00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Meta platforms could generate as much as $22 billion in annual gross revenue starting in
00:082027 by renting excess AI computing capacity, according to Evercore ISI analyst Mark Mahaney.
00:15The analyst raised his Meta price target to $860 from $820, implying roughly 52% upside from shares
00:24trading near $565. Meta reportedly plans to double its computing capacity from 7 gigawatts
00:30in 2026 to about 14 gigawatts by 2027. Mahaney estimates renting half a gigawatt could generate
00:37$11 billion annually, while one gigawatt could produce $22 billion and add up to 432 in annual
00:44earnings per share. He described the opportunity as a call option rather than a forecast.
00:51CEO Mark Zuckerberg said Meta has received premium offers for its computing capacity,
00:55but he believes the company can make more money by using it to sell AI services.
01:00Meta plans to spend $130 billion to $145 billion this year on infrastructure.
01:06For all things money, visit Benzinga.com.
Comments