$META is having its best week since early 2024, jumping 6% as of Friday July 10 and tracking toward weekly gains of up to 15%.

$META is having its best week since early 2024, jumping 6% as of Friday July 10 and tracking toward weekly gains of up to 15%. Bank of America maintained its Buy rating, but the real catalyst appears to be an internal memo reviewed by Reuters that fundamentally changes the math on Meta's AI infrastructure spend.

The memo reveals Meta is building a custom silicon chip as part of a plan to add 14GW of total AI compute capacity across 2026 and 2027. Crucially, it pegs the 2026 cost per GW at roughly $22 billion based on $145 billion in capex. That figure is dramatically lower than Bank of America's prior estimate of $45 billion per GW for this year, suggesting significantly better capital efficiency than Wall Street had modeled.

What this means is that Meta isn't just spending aggressively on AI, they're doing it at nearly half the unit cost analysts expected. When a company can scale compute capacity this efficiently while maintaining analyst support, it validates the thesis that vertical integration in silicon actually translates to margin protection. The market rally this week feels less like hype and more like a repricing of Meta's infrastructure economics.

Meta stock has been on sale IMHO for a while, so I sold some cash-secured puts and bought about 100 shares. So far in good profit.

Not financial advice. For informational and educational purposes only.