Meta’s Potential AI Cloud Push Could Boost Earnings, Wolfe Research Says

Abdul Rahman

Mon, July 13, 2026 astatine 4:27 AM CDT 2 min read

Meta Platforms Inc (NASDAQ:META) is one of billionaire David Abrams' apical banal picks with upside potential. Analysts task much than 40% upside for Meta banal from the existent level. This societal media banal is fashionable with elite investors, arsenic immoderate 262 hedge funds ain Meta shares.

On July 2, Wolfe Research reaffirmed its Outperform standing connected Meta Platforms Inc (NASDAQ:META) banal with a terms people of $800 connected the shares. The brokerage updated its telephone connected Meta banal pursuing a Bloomberg report that Meta is gathering a unreality infrastructure concern akin to Amazon Web Services, Google Cloud, and Microsoft Azure. According to the report, Meta plans to merchantability computing powerfulness and models to AI developers to capitalize connected the increasing request for AI compute capacity.

Wolfe Research believes that Meta's imaginable unreality offering could supply a large boost to the company's earnings. The brokerage estimates a 20% assistance to the EPS for each gigawatt of unreality capableness that is monetized astatine a complaint of $25 billion. However, the brokerage noted that Meta whitethorn request to rise superior to money its unreality infrastructure business. It estimates the company's 2027 capex astatine $200 billion.

Meta Platforms Inc (NASDAQ:META) owns a portfolio of societal media platforms, including Facebook, WhatsApp, and Instagram. The institution chiefly makes wealth done selling ads, enabling businesses to scope billions of imaginable customers.

While we admit the imaginable of META arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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