Mark Zuckerberg's Meta Is Putting Its In-House Iris AI Chip Into Production in September as Part of a Plan to Double Its Computing Capacity to 14 Gigawatts
Wall Street is underestimating the implications for Meta's long-term growth.
Overview
CEO Mark Zuckerberg is focused on turning Meta Platforms (NASDAQ: META) into a leader in artificial intelligence (AI). An internal memo revealed plans to move Iris, its custom data center AI chip, into production in September, and to double the company's data center capacity to 14 gigawatts in 2027.
This is significant for investors because Meta's stock is not currently valued like an AI leader. It trades at a forward price-to-earnings multiple of 21, a discount compared with most of the other "Magnificent Seven" stocks, which largely trade at multiples of around 25 or higher. If Meta succeeds at turning its heavy capital spending into more profitable growth, the market could re-rate the stock to a level more in line with its peers.
Image source: The Motley Fool.
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Originally published at www.fool.com.