3 Numbers Show Wall Street Remains Blind About Meta’s AI Spend and Keep Me Loading Up

I support hitting the bargain fastener connected Meta Platforms (NASDAQ:META), and the crushed is simple: the marketplace is pricing this institution arsenic if the AI capex measure volition crush the P&L, and the numbers accidental the opposite.

Shares closed astatine $646.01 connected July 17, down 7.6% implicit the trailing twelvemonth and 1.96% twelvemonth to date. I work the raised $125 to $145 cardinal capex usher arsenic a receipt for compounding infrastructure returns. Three numbers support pulling maine back.

The Custom Silicon Shift

On the Q1 2026 call, CFO Susan Li said the capex bump reflected "higher constituent pricing this twelvemonth and, to a lesser extent, further information halfway costs to enactment future-year capacity." Mark Zuckerberg past flagged that Meta is rolling retired "more than 1 gigawatt of our ain customized silicon that we are processing with Broadcom" alongside AMD chips complementing the NVIDIA systems. That MTIA blend, co-developed connected a cost-efficient 2nm architecture, structurally lowers the constituent ostentation premium and smooths the downstream depreciation deed that bears exemplary uniformly.

Massive EBITDA Leverage

Q1 2026 gross grew 33.08% YoY to $56.31 billion. Operating income roseate 30.29% to $22.87 billion. Ad impressions climbed 19% YoY and terms per advertisement roseate 12%. TTM EBITDA is $109.3 cardinal connected $214.96 cardinal of revenue. The halfway advertisement instrumentality runs astatine astir 62% EBITDA margin, and that is what absorbs rising depreciation with virtually zero menace to wide profitability.

Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and Meta didn't marque the cut. Grab the names FREE today.

Wholesale Compute Salvage

The carnivore lawsuit assumes under-utilized GPU capableness becomes balance-sheet dormant weight. Meta's pivot to renting retired surplus compute arsenic a wholesale unreality inferior monetizes the hardware portion it depreciates. Jim Cramer described the setup connected Mad Money connected July 6, 2026, noting Meta could "join the ranks of the caller clouds" that merchantability computing powerfulness externally. Surplus GPUs crook into gross alternatively than overhead.