What lies beneath, Are Meta shares surging because of its new AI model, or is it something else?

While the headlines are buzzing about Meta’s shiny new Muse Spark 1.1 AI model and its pivot to a paid developer model, Wall Street’s biggest bulls are actually focused on a much quieter, highly technical detail tucked away in an internal memo.

The real reason shares are pushing higher is tied directly to the underlying math of Meta’s infrastructure, first brought to light by Reuters. The leak prompted BofA Securities analyst Justin Post to reiterate a Buy rating and an $835.00 price target on Meta Platforms (NASDAQ: META).

Here is the breakdown of the hidden catalyst driving the stock:

Investors have long been anxious about Meta’s eye-watering capital expenditure (capex) budget. Building AI requires an unimaginable amount of electricity and data centers. However, an internal company memo reviewed and reported by Reuters reveals that Meta isn’t just building big—it is building incredibly efficiently.