Meta $Meta Platforms(META.US) is building a cloud business to sell excess AI capacity. What do I think of this?
I think this was coming. For months, I thought this was the only hyperscaler with an unclear AI strategy. You bought up all this compute for...what?But, I feel this move came under pressure from how their share price has been doing this year more than anything. I believe this is the right move for the business. They can turn around and become a neocloud.Wells Fargo has them generating $20B revenue from the resale opportunity. What does this mean for semis? This can get ugly fast. I believe Meta will still hit their CapEx target for FY26, but FY27 may paint a completely different picture. A drop in CapEx leads to an immediate selloff in the entire semi space. A market opportunity that becomes lost. You can check out my article on Meta from May in the replies 👇
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