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Meta Platforms (META) shares inched higher on Sept. 15 after the company confirmed plans to deploy its next-gen proprietary AI processor MTIA 450 (code-named Arke) into data centers in the first half of 2027. The deployment could help curb escalating compute costs and improve operational efficiency, Yee Jiun Song, Meta’s vice president of engineering, told Bloomberg in an interview today.
Following significant recovery in recent weeks, META stock is now up nearly 4% versus the start of this year.
What the News Really Means for Meta Stock
Meta Platforms is deepening its custom chip strategy through its Meta Training and Inference Accelerator (MTIA) program to optimize data center performance per watt and per dollar.
The tech giant is currently testing its third-generation Arke processor, having already received initial silicon from production partner TSMC (TSM) in early September, and expects to complete design work on its fourth-generation Astrid chip within weeks for deployment by late 2027.
Developed alongside Broadcom (AVGO), these custom accelerators focus strictly on general-purpose inference after META scrapped its dual-purpose Olympus design due to cost concerns.
By committing to over a gigawatt of proprietary capacity, the Facebook parent aims to reduce its reliance on expensive third-party GPUs, preserving long-term margin as infrastructure expenditure scales.
Dan Niles Remains Bullish on META Shares
While the U.S. 10-year yield at record levels continues to weigh on tech valuations, market strategist Dan Niles sees a compelling bullish case for META shares as major overhangs dissipate and clear AI monetization paths emerge.
Speaking with CNBC, Niles noted that Meta Platforms has resolved regulatory friction by settling state attorney general lawsuits, while addressing historical concerns over massive capex.
Unlike cloud peers Microsoft (MSFT), Alphabet's (GOOG) (GOOGL) Google, and Amazon (AMZN), META previously lacked direct cloud or API revenue channels; however, its recent launch of a commercial API and the strong performance of its cost-effective Spark 1.3 model have reshaped that narrative.
Still, the multinational is currently trading at a rather attractive 23x forward earnings, he concluded.
What’s the Consensus Rating on Meta Platforms?
It's also worth mentioning that Wall Street analysts remain bullish on Meta Platforms.
The consensus rating on META stock sits at “Strong Buy,” with the mean price target of about $757 indicating potential upside of roughly 17% from here.
