UBS: Meta's sale of AI computing power may not necessarily be bad news, but could instead alleviate profit pressure According to BlockBeats, on July 2nd, America believes that if Meta sells AI computing power or model access services to external customers, it may not necessarily be interpreted by the market as a negative signal of "AI infrastructure surplus". On the contrary, this may become a path for Meta to convert its massive AI investment into revenue faster. In the First Read report released on July 1st, America mentioned that Meta is reportedly considering two commercialization options: selling "raw" computing power to external companies, and providing access to AI models hosted on Meta's infrastructure. The report states that Zuckerberg has previously mentioned similar options in public, so this is not entirely new news. However, this direction may still make some investors feel uneasy. The long-term growth opportunities that Meta has portrayed to the market in the past mainly include advertising, more immersive content experiences, business messaging, Meta AI, AI devices, etc., rather than directly becoming a cloud computing or computing power provider. Therefore, if the company really sells computing power to the outside world, the market may ask: is this an active monetization or a passive digestion after excessive AI capital expenditure? America's judgment is more pragmatic. The bank believes that one of the core issues currently facing Meta is the long AI investment cycle and unclear revenue realization time. Compared to waiting for Meta AI chatbots or enterprise intelligent agent businesses to gradually increase in volume, selling cloud computing power or model access may bring more revenue from the near end, thereby alleviating investors' concerns about a flat or even declining EPS in 2027. The report maintains Meta's Buy rating with a 12-month target price of $865, while the stock price listed in the report is $601.85. America expects Meta's 2026 and 2027 diluted GAAP EPS to be approximately $32.6 and $33.0, respectively, and has stated that it will not adjust its profit forecast until the company confirms the relevant information. Its target price is still based on 26 times the full year expected diluted GAAP EPS as of the first quarter of 2028. The significance of this report is that Meta's AI trading is entering a new phase: the market is no longer just asking how much it will spend on GPUs and building data centers, but is beginning to demand to see how these investments will generate returns. For America, selling computing power is not a strategic retreat, but rather adding a cash flow outlet to the AI investment cycle.