• BofA estimates that Meta will spend about $22 billion per gigawatt in 2026, less than half of its earlier forecast of $45 billion.
• Meta is reportedly planning to begin manufacturing its in-house AI chip, codenamed ‘Iris,’ in September.
• Following Meta’s launch of Muse Spark 1.1, Citizens said it represents a significant step in the company’s push to compete with leading AI labs.

Shares of Meta Platforms (META) jumped 7% in early trading on Friday, breaching its 200-day moving average (200-DMA) for the first time in over two months, as optimism around its AI initiatives, along with bullish Wall Street commentary, lifted investor sentiment.

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META shares are on track to post a 10th gain in 12 sessions and clock their best week since mid-April.

BofA Says META’s Capacity Buildout More Cost-Effective Than Amazon, Google

BofA Securities reiterated its ‘Buy’ rating and $835 price target on Meta after a Reuters report stated that the company is accelerating its AI infrastructure buildout with a custom-designed chip as part of its plan to expand total computing capacity to 14 gigawatts by 2027. Meta is reportedly planning to begin manufacturing its in-house AI chip, codenamed ‘Iris,’ in September.

According to an Investing.com report, BofA now estimates that Meta will spend about $22 billion per gigawatt in 2026, less than half of its previous estimate of $45 billion. The firm said building capacity for under $30 billion per gigawatt could offer more attractive economics than Amazon's and Google’s estimated $10 billion to $16 billion in annual cloud revenue per gigawatt.

Following Meta’s launch of Muse Spark 1.1, an AI model with enhanced coding and tool-use capabilities, Citizens said it represents a significant step in the company’s push to compete with leading AI labs while reinforcing expectations for growing AI computing demand despite execution risks.

Retail Eyes Further Gains Ahead Of Q2 Earnings

Stocktwits users grew increasingly optimistic about a sustained rally into second-quarter earnings.

One Stocktwits user expects Meta shares to reach $700 before its Q2 earnings and surpass $800 after the results.

Meanwhile, retail sentiment on Stocktwits turned ‘extremely bullish’ from ‘bullish’ over the past 24 hours, amid a 221% jump in message volume. META was also among the top trending tickers on the platform.

META shares have gained around 2.6% so far this year, outperforming the Roundhill Magnificent Seven ETF’s (MAGS) 1.5% increase.

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