Meta Is Down 27%. One Analyst Sees a $22 Billion AI Business Hiding in Plain Sight

Meta Platforms, Inc. has experienced a 27% drop from its 2025 peak amid investor concerns over the company's rapid AI spending. Evercore ISI analyst Mark Mahaney envisions a potential $11 billion to $22 billion annual revenue stream from leasing unused AI compute capacity. Despite Meta's current lack of a public cloud business, the company is constructing hyperscaler-scale infrastructure.

If demand for AI training proves inconsistent, partially utilized resources could generate significant revenue. However, Meta has not publicly announced any plans for a commercial cloud service. Additionally, CEO Mark Zuckerberg has expressed a preference for using AI to develop valuable intelligence rather than renting infrastructure.

The potential for such a rent-a-gpu business hinges on 2027 GPU pricing, utilization, and the willingness of third-party customers to adopt Meta as a supplier. Although the $22 billion upside represents an intriguing opportunity, it should not be considered a cornerstone of Meta's valuation at present.