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

This analysis argues that Wall Street is underestimating Meta Platforms' AI capital expenditure strategy. Despite a 7.6% share price decline over the past year and a raised capex guide of $125-145 billion, the article highlights three key bullish signals: Meta's custom silicon development with Broadcom on a 2nm architecture to reduce costs, a core ad business running at ~62% EBITDA margin with Q1 2026 revenue surging 33% to $56.31 billion, and a pivot to renting surplus GPU capacity as a wholesale cloud service. The author compares Meta favorably to Alphabet, Snap, and Pinterest, citing superior operating margins (40.6%), net margins (30.08%), and valuation metrics (forward P/E of 21, PEG of 0.942). The piece concludes that Meta's AI infrastructure spending will generate compounding returns rather than crushing profitability.