Meta Platforms Dives into Cloud Computing with ‘Meta Compute’, Boosting Stock by Over 6%
Meta Platforms (NASDAQ: META) has boldly stepped into the cloud computing arena with the introduction of Meta Compute. This new business unit will offer AI computing power and models directly to external customers, positioning the social media giant against industry titans such as Amazon Web Services, Microsoft Azure, and Google Cloud. Following the announcement, Meta’s stock experienced a 6–10% surge in multiple sessions this week, with share prices escalating from approximately $550 in late June to over $673 by July 10, 2026.
Meta Compute’s primary objective is to generate revenue from Meta’s extensive, costly AI infrastructure by leasing surplus GPU capacity. It may also provide access to its internally developed large language models. According to analysts at Wolfe Research, for every gigawatt of compute Meta monetizes at an estimated $25 billion rate, earnings per share could potentially increase by around 20%. The firm has set a price target of $800 for the stock, while also noting significantly higher 2026 capital expenditure projections nearing $200 billion.
Furthermore, Meta has plans to commence in-house production of its proprietary “Iris” AI chip in September 2026, aiming for 14 gigawatts of compute capacity by 2027. The rollout of new AI models — Muse Spark and Muse Image — across Facebook, Instagram, and WhatsApp, further solidifies Meta’s transition to a full-stack AI infrastructure company. In Q1 2026, Meta reported a total revenue of approximately $56.3 billion with a net income close to $26.8 billion.
Source: StocksToTrade — META Stock Jumps As New AI Cloud Ambitions Take Shape