Meta Plans $10B West Texas AI Data Hub, Stock Drops 25%
Meta plans to invest $10 billion in its West Texas AI data center expansion and has joined eight early customers sampling Arm’s new 136-core CPU tailored for AI workloads. Shares have plunged 25% to $552, RSI at 26.4 signals oversold territory, yet analysts maintain an $853 target.
1. West Texas AI Data Center Investment
Meta is boosting its West Texas AI data center investment to $10 billion to expand compute capacity for generative AI training and inference, leveraging abundant energy resources and scale.
2. Engagement with Arm’s AI CPUs
Meta is among eight launch customers sampling Arm’s 136-core AI-focused CPU, which offers double the performance per watt versus similar x86 chips and could increase CPU content in GPU-centric server racks.
3. Technical Stock Selloff
Shares tumbled over 25% from their 52-week high to roughly $552, with the RSI at 26.4 and breaches of the 50-day and 200-day averages signaling oversold conditions and technical weakness.
4. Analyst Outlook and Potential Upside
Despite the selloff, analysts maintain an $853 consensus target, implying 55% upside, betting on Meta’s AI-driven growth and increased infrastructure investments to support long-term earnings acceleration.