Meta Platforms' (META) plans to build large-scale artificial intelligence infrastructure underscore confidence in its long-term revenue outlook and AI opportunities but also imply higher future capital and operational spending, BofA Securities said in a note Tuesday.

According to the brokerage, in a Threads post, Meta's CEO outlined plans for multiple data centers, including a 1-gigawatt "Prometheus" cluster expected in 2026 and the larger "Hyperion" project targeting at least 5 gigawatts of capacity by 2030.

This level of investment will likely be a major focus on the next earnings call as investors seek clear returns to justify higher stock multiples, according to the note.

The firm raised its 2025 and 2026 revenue estimates to $189.96 billion and $217.01 billion, respectively, citing improving ad spending, macroeconomic recovery, and AI-enabled ad tools.

BofA also increased its 2025 earnings per share forecast to $33.36, though it trimmed the 2026 EPS estimate slightly to $37.01 to account for higher research and development and depreciation expenses tied to AI infrastructure buildout.

The firm raised its price target for Meta shares to $775 from $765 and reiterated a buy rating, calling Meta the best-positioned online advertising company to benefit from AI-driven share gains.

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