Evercore ISI analyst Mark Mahaney raised his price target for Meta Platforms Inc. to $860 from $820. This revised target implies a potential upside of more than 50%.
The forecast relies on Meta renting out excess artificial intelligence computing capacity to external customers. This move could generate an estimated $22 billion in annual gross revenue starting in 2027.
Mahaney notes that commercializing a fraction of Meta’s planned 14-gigawatt compute capacity would significantly boost earnings. Meta is positioned as a rare merchant seller of compute power while capacity at major cloud providers remains largely sold out.