Key Points

Meta Platforms shares climbed after indications surfaced regarding entry into the AI cloud infrastructure arena.
The firm continues to advance in the expansive digital advertising sector through its suite of AI solutions.
Stronger momentum in Meta growth could drive notable stock appreciation across the coming three years.

This year has proven lackluster for Meta Platforms investors. Shares of the social media leader have declined 5 percent so far, trailing the tech-heavy Nasdaq Composite index that has posted 11 percent gains in 2026.

Worries over Meta aggressive spending on artificial intelligence initiatives and their eventual payoffs have pressured the share price. Yet the stock surged almost 9 percent on July 1 after reports suggested the company might join the profitable AI cloud services market.

Let us examine what this possible step could mean for Meta shares.

Meta Platforms may tap a multibillion-dollar chance with this strategy

Bloomberg News indicated that Meta Platforms intends to offer surplus AI cloud computing resources to outside clients. The announcement lifted the stock because Meta plans to invest 135 billion dollars in capital expenditures this year, well above the 72.2 billion dollars spent last year.

The company is deploying these funds to embed AI capabilities throughout its apps and ad platforms while developing advanced models via its Superintelligence Labs unit. These efforts already deliver measurable benefits.

Meta Muse Spark model, the first release from the new lab and the engine behind the Meta AI assistant, has boosted user sessions by double-digit percentages. The business assistant resolves client queries 20 percent quicker, and more than 8 million advertisers now rely on its generative AI creative tools.

Meta is also expanding in AI wearables, with daily active users of its smart glasses doubling from a year earlier in the first quarter. Concerns about the impact of heavy spending on profits have kept investors cautious, so news of potential monetization of idle capacity brought relief.

Selling excess resources would let Meta generate revenue from underused infrastructure and ease fears of overinvestment. Reports also note that Meta would provide access to its own AI models alongside raw compute power for customers to run their applications.

This positions Meta to compete in the AI cloud sector projected to reach 267 billion dollars by 2030 according to Gartner. The move could accelerate the company already solid expansion. First-quarter revenue rose 33 percent year over year to 56.3 billion dollars, though adjusted earnings per share grew only 14 percent after one-time items.

As AI infrastructure investments begin to yield returns, profit growth should pick up following an expected 8.5 percent rise in 2026.

Should Meta follow other large tech peers into the AI cloud space, it may surpass current analyst forecasts.

Attractive valuation and growth prospects support a compelling purchase

Meta underperformance this year has left the stock trading at appealing multiples. It carries a trailing price-to-earnings ratio of 21, well below the Nasdaq Composite level of 39. While modest earnings growth explains the discount, faster expansion could prompt the market to assign a richer valuation and unlock further gains.

Meta trades at seven times sales, a modest premium to the Nasdaq average of 5.3. Continued success with AI advertising tools and the reported cloud move could help the company beat consensus estimates over the next three years.

Analysts project 26 percent revenue growth this year, followed by solid double-digit increases in 2027 and 2028 at a moderating pace.

Meta may top those figures given its rising share of the digital ad market. eMarketer forecasts Meta could capture 27 percent of the market in 2026, overtaking Google. With the overall digital ad market expected to exceed 1.5 trillion dollars by 2030, Meta stands a good chance of surpassing revenue targets.

Even assuming 354 billion dollars in revenue by 2028 and retention of the current seven-times sales multiple, the market capitalization could reach 2.5 trillion dollars. That implies roughly 60 percent upside over three years, making the stock attractive at present levels.

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Harsh Chauhan holds no positions in the stocks discussed. The Motley Fool owns shares of and recommends Meta Platforms. The Motley Fool recommends Gartner and maintains a disclosure policy.

The views expressed are those of the author and do not necessarily reflect the opinions of Nasdaq Inc.