Meta <a href="https://todaytrendnews7.com/why-the-<a href="https://todaytrendnews7.com/stock-market-news-for-july-10-2026/” title=”Stock Market News for July 10, 2026″>stock-market-and-economy-may-seem-out-of-sync/” title=”Why the stock market and economy may seem out of sync”>Stock Surges as Hidden AI Cost Breakthrough Stuns Wall Street
Nauman Khan
Fri, July 10, 2026 at 6:42 PM GMT+5:30
1 min read
- META+6.57%
This article first appeared on GuruFocus
Meta Platforms (NASDAQ:META) shares climbed about 3% early Friday after a BofA Securities analysis pointed to potentially lower AI infrastructure costs than Wall Street had expected
BofA analystJustin Post reiterated a Buy rating and an $835 price target, saying an internal Meta memo reviewed by Reuters suggests the company could expand computing capacity more efficiently than previously estimated. Meta expects to deploy about 6.5 gigawatts of AI compute capacity during 2026, including 5.5 gigawatts in the second half of the year
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Meta’s projected capital spending of roughly $145 billion implies construction costs near $22 billion per gigawatt, compared with BofA’s earlier estimate of about $45 billion per gigawatt. The analyst said the figures, if accurate, may ease investor concerns over the company’s heavy AI investment program
Separately, Reuters reported that Meta plans to begin manufacturing its custom AI chip, code-named Iris, with partners Broadcom (NASDAQ:AVGO) and Taiwan Semiconductor Manufacturing (NYSE:TSM) later this year
BofA said the chip initiative 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
