Meta is spending between $125 billion and $145 billion on AI infrastructure in 2026. Its free cash flow fell from $26 billion in Q1 last year to $1.2 billion in Q1 this year. Investors have been asking the same question ever since: what happens if all that compute does not get used fast enough?
Bank of America just offered its answer.
In a note reiterating its Buy rating on Meta, BofA Securities said the company’s push into enterprise AI could give it an important outlet if its infrastructure buildout results in excess capacity.
The bank said enterprise AI demand could create a more durable, less macro-sensitive revenue stream for Meta than its current advertising-driven model. It also said enterprise sales could give Meta optionality if there is a capacity overbuild, helping contain any potential margin downdraft.
BofA pointed to the scale of the opportunity. The enterprise AI solutions and cloud capacity market is expected to top $1 trillion by 2028, according to Investing.com.
The bank’s argument is that Meta does not need to dominate that market for the business to become meaningful. Even a small share of a market that size could add substantial revenue for a company that already has the infrastructure in place.
Why Zuckerberg’s shareholder meeting comments matter here
The BofA note lands alongside a specific signal from Meta’s leadership. At the company’s annual shareholder meeting, CEO Mark Zuckerberg indicated Meta may enter the cloud computing market if its infrastructure investments result in excess capacity.
He also noted strong inbound demand from external companies seeking access to Meta’s APIs and computing resources, according to Investing.com.
Link: https://sg.finance.yahoo.com/news/bank-america-stark-message-meta-191300984.html