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Meta Platforms Inc.<\/strong> (NASDAQ:<\/a>META<\/a>) could generate as much as $22 billion in annual gross revenue starting in 2027 by renting out excess AI computing capacity, according to Evercore ISI<\/strong> analyst Mark Mahaney<\/strong>, who raised his price target to $860 from $820 this week. <\/p>\n With shares trading near $565, the target implies roughly 52% upside. Evercore’s compute opportunity depends partly on what GPUs rent for in 2027, and prediction market traders are already betting on those prices. <\/p>\n Evercore Sees $22 Billion From Just 7% of Meta’s Capacity <\/p>\n Meta reportedly plans to double its computing capacity from 7 gigawatts in 2026 to around 14 gigawatts by 2027. For perspective, one gigawatt is enough electricity to power approximately 800,000 homes. <\/p>\n Mahaney’s thesis is that Meta may not need all that capacity at all times. The company could rent the surplus to outside customers. <\/p>\n He estimates that commercializing half a gigawatt could generate $11 billion in annual gross revenue, according to a MarketWatch report<\/a>. <\/p>\n At one gigawatt, just 7% of Meta’s planned capacity, revenue could reach $22 billion and add up to $4.32 in annual earnings per share. <\/p>\n The analyst reportedly described Meta as a rare potential “merchant seller” of compute at a time when the major cloud providers are effectively sold out. He framed compute sales as a “call option,” not a bet that Meta becomes a full-scale cloud provider. <\/p>\n GPU Traders Favor H100 Prices Above $2.50 <\/p>\n Kalshi’s<\/strong> market<\/a> asks what it will cost to rent an Nvidia Corp.<\/strong> (NASDAQ:<\/a>NVDA<\/a>) H100 chip for one hour in July 2027. <\/p>\n As of Tuesday, traders gave a 60% chance that the average price remains above $2.50 per hour, suggesting GPU rental prices could remain strong enough to support Meta’s compute opportunity. <\/p>\n The market tracks one chip type, though, and Meta’s actual revenue would hinge on utilization, costs and how much capacity it can spare. <\/p>\n Kalshi and Benzinga have an existing data collaboration agreement. <\/p>\n Meta Is Both a Compute Buyer and Seller <\/p>\n Meta remains a massive compute customer itself, with roughly $35 billion in announced commitments<\/a> to CoreWeave Inc.<\/strong> (NASDAQ:<\/a>CRWV<\/a>) and up to $27 billion pledged<\/a> to Nebius Group N.V.<\/strong> (NASDAQ:<\/a>NBIS<\/a>), a figure that includes $15 billion of potential additional capacity. <\/p>\n Meta can buy capacity where it faces shortages while renting out capacity it does not need. <\/p>\n CEO Mark Zuckerberg<\/strong> has said Meta received offers for its computing capacity at a “premium.” However, he believes Meta can earn more by using that capacity to sell AI services than by renting it directly. <\/p>\n","protected":false},"excerpt":{"rendered":"Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Meta…\n","protected":false},"author":2,"featured_media":656404,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[261],"tags":[291,289,290,18,160724,277450,19,17,105636,277451,82],"class_list":["post-656403","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-eire","tag-evercore-isi","tag-gross-revenue","tag-ie","tag-ireland","tag-mark-mahaney","tag-surplus-capacity","tag-technology"],"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/656403","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=656403"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/656403\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/656404"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=656403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=656403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=656403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}