Citizens analyst Andrew Boone has maintained a Market Outperform rating on Meta Platforms (NASDAQ: META) while adjusting the price target downward. The new price target is set at $800, a reduction from the previous target of $825. The rating adjustment reflects a revised outlook on the stock's performance potential.

The decision to lower the price target comes as part of a routine evaluation of the company's valuation and market position. Despite the reduction, the Market Outperform rating indicates continued confidence in the company's long-term prospects.

Analyst Rating and Price Target

The revised price target suggests a recalibration of expected returns, though the underlying sentiment remains positive. Investors will likely monitor future updates for further guidance on the company's trajectory.

Meta Platforms is securing long-term supply agreements for essential components to support a planned doubling of its compute capacity to 14GW by 2027. The company is purchasing NAND flash memory from Sandisk Corp., DRAM from Samsung Electronics Co., Ltd., and fiber optics from Sumitomo Electric Industries Ltd. These infrastructure commitments align with Meta's expanding physical footprint, which includes a new 1 gigawatt, AI-optimized data center in Sturgeon County, Alberta, representing a 13 billion Canadian dollar investment.

Infrastructure Expansion

The push to 14GW represents a significant increase in Meta's processing power. The company intends to deploy about 7 gigawatts of computing infrastructure this year before doubling that capacity to 14 gigawatts next year. The Alberta facility marks Meta's first data center in Canada, serving as a critical node for North American operations.

Strategic Supply Chain

To support this growth, Meta has secured long-term agreements for memory, networking hardware, and flash storage. The upcoming production of the 'Iris' AI chip further underscores the company's focus on custom silicon to optimize its infrastructure. The chip was developed with Broadcom, Inc. and will be manufactured by Taiwan Semiconductor Manufacturing Co. Testing reportedly took just six weeks and uncovered no major issues.

Analyst Perspective

BNP Paribas analyst Nick Jones highlighted that investors remain highly focused on the company's capital spending plans. Jones anticipated that Meta would raise its 2026 capital expenditure outlook by at least $10 billion from its current range of $125 billion to $145 billion to cover rising component costs. Futurum Group CEO Daniel Newman commented that the custom chip strategy is designed to expand computing capacity alongside Nvidia Corp and Advanced Micro Devices, Inc. rather than replace them.