Key TakeawaysMeta Platforms is launching a neocloud initiative to commercialize computing capacity and generate revenue from its extensive data center infrastructure.Shares have climbed approximately $50 following the neocloud strategy reveal.Wolfe Research maintains an Outperform rating with an $800 price objective; META shares currently sit at roughly $605.72.Wolfe Research has increased its fiscal 2027 capital expenditure projection for Meta to $220 billion, significantly exceeding Street estimates of $160 billion and above.The company anticipates 2026 capex ranging from $125 billion to $145 billion; Meta has also commenced construction on an AI-focused data center facility in Canada.Meta Platforms (META) shares are hovering around $605.72, gaining $2.60 in Thursday’s session, as two positive developments spotlight the tech giant’s aggressive artificial intelligence infrastructure expansion.Meta Platforms, Inc., METAJim Cramer highlighted Meta during this week’s Mad Money broadcast, praising the company’s strategic entry into the neocloud sector as a calculated decision. The social media behemoth, historically among the largest purchasers of computational resources, is now positioning itself as a seller.This strategic shift initially rattled certain competitors. Neocloud sector equities experienced a selloff last week following Meta’s announcement of its intention to compete directly in this space.Cramer dismissed the pessimistic interpretation. He contended that the ability to lease computing resources at premium rates indicates a scarcity rather than surplus of data center infrastructure. META shares have appreciated roughly $50 since the strategic announcement.Wolfe Research Increases Capital Expenditure ProjectionsWolfe Research reaffirmed its Outperform stance on META this Thursday, maintaining its $800 valuation objective. The equity currently trades substantially below that threshold at approximately $605.72 — retreating from its 52-week peak of $796.25.The firm’s most significant adjustment involved its capital spending outlook. Wolfe currently anticipates Meta will allocate $220 billion toward infrastructure during fiscal 2027, representing a substantial increase from its previous capacity projection of $15 billion. This figure considerably surpasses the consensus Street forecast of $160 billion or higher.Wolfe additionally revised its capacity projection upward, now estimating Meta will possess approximately 17 gigawatts of operational capacity in the coming year, elevated from a previous 15-gigawatt estimate.The research organization had previously indicated that Meta would likely increase capital expenditures and might pursue a capital infusion through debt instruments or equity offerings to support it.For calendar year 2026, Meta’s capital spending is forecast at $125–$145 billion, representing a dramatic escalation from earlier predictions. Wolfe emphasized that Meta must demonstrate to shareholders tangible, sustainable revenue streams beyond advertising to warrant such investment magnitudes.Meta currently maintains a return on invested capital of 25% alongside a debt-to-equity ratio of 0.36.Canadian Data Center Initiative and Advertising Tool EnhancementRegarding infrastructure development, Meta recently initiated construction on a new data center campus in Sturgeon County, Alberta — marking its inaugural Canadian facility and 33rd worldwide. The installation is engineered for artificial intelligence computing loads, represents an investment exceeding CAD $13 billion, and is projected to generate approximately 3,000 construction positions plus more than 300 permanent employment opportunities.Meta is simultaneously incorporating its Muse Image model into its Advantage+ creative advertising platform, introducing visual reasoning and self-refinement capabilities to its advertisement generation infrastructure.Erste Group elevated META from Hold to Buy this week, referencing the company’s AI investment trajectory. Truist Securities likewise preserved its Buy recommendation, emphasizing Meta’s AI distribution advantages through the Muse Spark ecosystem.CEO Mark Zuckerberg has conceded that AI agent development has progressed more gradually than initially anticipated. Separately, investor Michael Burry has established short positions spanning AI infrastructure equities.Meta stock currently trades at $605.72, with Wolfe Research’s $800 valuation target suggesting approximately 32% appreciation potential from present levels.The post Meta (META) Stock Surges $50 Following Neocloud Strategy Announcement appeared first on Blockonomi.