Meta Could Turn 1 Gigawatt of AI Capacity Into $22 Billion as Stock Sits 27% Below High
Updated
Updated · Yahoo Finance · Aug 29
Meta Could Turn 1 Gigawatt of AI Capacity Into $22 Billion as Stock Sits 27% Below High
2 articles · Updated · Yahoo Finance · Aug 29
Summary
Evercore says Meta could generate $11 billion to $22 billion a year by leasing just 0.5 to 1 gigawatt of excess AI compute, framing a possible payoff from infrastructure spending that has weighed on the stock.
14 gigawatts of compute capacity by 2027 is the backdrop for that scenario, with analyst Mark Mahaney estimating the rental business could add up to $4.32 a share in earnings and lifting his price target to $860.
Meta has not announced any public cloud-style service, and Zuckerberg has signaled he would rather use compute to build and sell higher-value AI products than maximize short-term rental income.
27% below its 2025 high, Meta shares have come under pressure as free cash flow tightened on AI capex, though the analyst argues spare capacity could become a monetizable asset rather than stranded spending.
If Meta accidentally transforms into a massive cloud provider, how will this sudden flood of cheap GPUs impact the booming AI startup ecosystem?
Will Mark Zuckerberg sacrifice his vision of building a personal superintelligence just to appease anxious investors with short-term server rental cash?