UBS Maintains Buy Rating on Meta, Sees AI Chip Sales as Path to Faster Revenue Realization

According to UBS report published on July 1, the bank views Meta's potential sale of AI compute power or model access to external customers as a positive signal rather than evidence of AI infrastructure oversupply. UBS maintained its Buy rating on Meta with a 12-month price target of $865, seeing the strategy as a way to accelerate revenue generation from the company's large AI investments. The bank projects Meta's diluted GAAP EPS at approximately $32.6 for 2026 and $33.0 for 2027, noting that selling cloud computing capacity could provide near-term cash flow and ease investor concerns about flat or declining EPS in 2027.
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