Meta's Stock Surges on Hidden AI Cost Breakthrough

Meta Platforms stock is surging Friday after a Bank of America research note pointed to potentially major cost savings in the company's massive AI infrastructure buildout. Analyst Justin Post reiterated a Buy rating and an 835 dollar price target after reviewing an internal Meta memo obtained by Reuters, which suggests Meta could expand computing capacity far more efficiently than Wall Street had modeled. The company plans to deploy roughly 6.5 gigawatts of AI compute during 2026, with 5.5 gigawatts coming in the second half of the year. Meta's projected capital spending near 145 billion dollars implies construction costs of about 22 billion dollars per gigawatt, roughly half of Bank of America's previous 45 billion dollar estimate. Reuters also reported that Meta plans to begin manufacturing its custom AI chip, code-named Iris, with partners Broadcom and Taiwan Semiconductor Manufacturing later this year. Bank of America said the chip is unlikely to explain the 2026 cost improvements but could strengthen Meta's long-term AI strategy through a broader custom silicon roadmap extending into 2027. Photo via Shutterstock. : Frederic Legrand - COMEO #META #MetaStock #AI 🌐 Find more market-moving insights at https://www.benzinga.com — your one-stop destination for the latest financial news, data, and expert analysis to stay ahead of the markets. 🖥️ Want the same tools the pros use—without the $10K Bloomberg terminal? Benzinga Edge gives you real-time portfolio alerts, weekly stock picks, and pro-grade research in one command center. 👉 https://bit.ly/4unSKiB ------------------------------------------------------------------------------------ 📲 Follow us on socials @benzinga 🔔 Subscribe To The Channel: https://www.youtube.com/@Benzinga ------------------------------------------------------------------------------------ ⚠️ Disclaimer: Investing in financial markets carries risk, and there are no guaranteed returns. All information is for educational purposes only and should not be taken as financial advice. Always do your own research and speak with a qualified financial advisor before making investment decisions. Only invest what you can afford to lose. Past performance does not guarantee future outcomes.