Meta is building a cloud infrastructure business to sell computing power and AI models to developers, according to a Bloomberg report confirmed by Wolfe Research on July 2. The brokerage estimates this cloud business could lift Meta's earnings by 20% for every gigawatt of capacity monetized at a $25 billion（約4兆円） rate, but notes the company may need to raise capital — with 2027 capex estimated at $200 billion（約32兆円） — to fund the expansion.
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Wolfe Research reaffirmed an Outperform rating on Meta stock on July 2, with a $800 price target, after a Bloomberg report revealed Meta is building a cloud infrastructure business to sell computing power and AI models to developers.
Why it matters
Wolfe estimates Meta's cloud offering could provide a 20% lift to earnings per gigawatt of capacity monetized at a $25 billion（約4兆円） rate — a potentially significant revenue stream if the company can execute. Meta would be competing directly with established cloud providers like Amazon Web Services, Google Cloud, and Microsoft Azure.
What to watch
Wolfe estimates Meta's 2027 capex at $200 billion（約32兆円）, suggesting the company may need to raise capital to fund the infrastructure buildout. The stock trades with analyst projections of more than 40% upside from current levels.
Meta's potential entry into cloud infrastructure addresses a structural shift in AI economics. As demand for AI compute capacity grows, cloud providers face sustained pricing power and the ability to diversify revenue streams beyond advertising. Meta already operates massive data centers for its social media platforms; a cloud offering would leverage existing infrastructure expertise and capital allocation patterns, though at a much larger scale.
Wolfe's $800 price target and Outperform rating rest on the thesis that cloud monetization could be meaningful to consolidated earnings. The 20% EPS lift per gigawatt, applied at a $25 billion（約4兆円） monetization rate, signals confidence that Meta can command competitive pricing from developers. However, the analyst also flags a critical constraint: 2027 capex estimated at $200 billion（約32兆円） implies significant capital discipline and possibly external funding will be required. This capital intensity distinguishes Meta's cloud play from its advertising business and introduces execution and financing risk.
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