Bank of America Maintains Buy Rating on Meta with $835 Target, Cloud Business Pursues Dual-Track Model

According to Bank of America, Meta's cloud business will pursue a dual-track approach on July 3: offering AI model hosting services similar to AWS Bedrock, and directly leasing GPU computing power like CoreWeave. The bank maintained its buy rating with a target price of $835.

The analyst noted Meta's self-developed chip progress lags Amazon, Microsoft, and Google, requiring external purchases of 1.6GW computing capacity. The viability of Meta's cloud business depends on large language model capabilities; stronger models will drive external demand for Meta's compute resources.