Bank of America: Raised target price for Meta to $775, increased revenue and profit forecasts for this year.

Bank of America Securities released a research report stating that Meta is building multiple gigawatt data centers, including a 1GW supercluster expected to come online next year, and another project Hyperion expected to provide at least 5GW of computing power by 2030. The firm believes that this shows management's confidence in Meta's revenue, but the investment scale implies that future capital expenditures and operating expenses will be higher. The firm expects that AI investment will be a focus of the upcoming earnings conference call. For 2025, the firm raised Meta's revenue forecast by 1% to $190 billion and raised the EPS forecast to $26.83. For 2026, the firm raised the revenue forecast by 1% to $217 billion, but lowered the EPS forecast by 1% to $29.16. The firm raised the company's target price from $765 to $775 and reiterated a "buy" rating.