Ad News Live
Meta AI: Meta Platforms (NASDAQ:META) shares rose nearly 3% in early trading Friday. The gain followed a new BofA Securities report.
Analysts pointed to lower-than-expected AI infrastructure costs. BofA analyst Justin Post kept his Buy rating on the stock.
He also maintained an $835 price target. Post cited an internal Meta memo reviewed by Reuters.
The memo suggests Meta can scale its computing capacity more efficiently than earlier projected.
The company plans to roll out about 6.5 gigawatts of AI compute capacity in 2026. Of that total, 5.5 gigawatts is expected in the second half of the year.
Meta's capital spending for the buildout is projected near $145 billion. That figure works out to roughly $22 billion per gigawatt.
It marks a sharp drop from BofA's earlier estimate of about $45 billion per gigawatt.
Post said the lower costs, if confirmed, could ease investor worries. Those concerns have centered on Meta's aggressive AI spending plans.
In a separate development, Reuters reported new details on Meta's chip strategy. The company is preparing to manufacture its custom AI chip.
The chip carries the code name Iris. Meta will work with two key partners on production.
Those partners are Broadcom (NASDAQ:AVGO) and Taiwan Semiconductor Manufacturing (NYSE:TSM). Manufacturing is expected to begin later this year.
BofA noted the Iris chip is not driving the 2026 cost improvements. Still, the analyst said it could support Meta's AI strategy over the long run.
The chip is part of a broader custom silicon roadmap. That roadmap extends into 2027.
Visual Disclaimer: This is an AI-generated illustrative portrait. It is used for creative representation and does not depict a real-time event. Created by AD News Live.
Follow Us
