BofA Securities Reiterates Buy Rating on Meta Platforms Inc. (META)

BofA Securities analyst Justin Post reiterated a Buy rating and $810.00 price target on Meta Platforms Inc. (NASDAQ: META)

The analyst comments: “Per Bloomberg, Meta plans to deploy its third-generation MTIA 450 chips, or Arke, in 1H’27, followed by higher-performance MTIA 500, or Astrid, beginning in late 2027. Developed with Broadcom, the custom chips are purpose-built for AI inference & designed to improve compute efficiency. Meta expects to deploy more than 1 GW of custom-chip capacity over 12 months, with adoption accelerating thereafter. The report also noted that the company considered developing a chip capable of handling both AI training and inference. However, Meta canceled the project after determining that the design could cost approximately 30% more, limiting its economic viability at scale. Our Take: Given Alphabet’s success with TPUs, we think custom silicon remains strategically important for Meta’s AI roadmap, with the potential to significantly lower long-term AI infrastructure costs and improve returns on capex. If we assume Meta is planning to deploy 5-6GW of owned capacity in 2027 at a cost of $200bn, and chips are 60% of the cost, then deploying own custom chips (assuming a 40% cost savings vs 3rd party chips) could generate ~8.5bn cost savings.”

For an analyst ratings summary and ratings history on Meta Platforms Inc. click here. For more ratings news on Meta Platforms Inc. click here.

Shares of Meta Platforms Inc. closed at $673.31 yesterday.

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