Trump Pushes Tech Firms for Self-Powered AI Data Centers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 04 2026
0mins
Should l Buy META?
Source: CNBC
- Self-Power Commitment: Trump is set to sign an agreement with major tech firms like Amazon, Google, and Meta, mandating them to supply their own power for AI data centers, addressing rising public anger over electricity prices, although the specifics of the commitment remain unclear.
- Rising Electricity Pressure: Average residential electricity prices in the U.S. increased by 6% in 2025, contrasting Trump's promise to halve prices during his term, highlighting the government's challenges in controlling energy costs, which could impact his support in the midterm elections.
- Implementation Challenges: The decentralized nature of electric grid regulations across states poses significant hurdles for the Trump administration in converting the pledge into actionable policy, with experts indicating that new federal legislation is necessary to address power supply shortages.
- Increased Political Pressure: Trump is leveraging his political influence to pressure tech companies into absorbing the costs associated with their data centers, despite the complexities arising from state-level regulation of power generation, which may complicate policy implementation.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 536.380
Low
655.15
Averages
824.71
High
1117
Current: 536.380
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Meta Platforms Inc's Intrinsic Value Analysis
- Intrinsic Value Assessment: According to GuruFocus's Discounted Earnings model, Meta Platforms Inc's intrinsic value is estimated at $730.56, while its current trading price is $536.38, indicating a 26.58% margin of safety, suggesting the company is modestly undervalued and may attract investor interest.
- Growth Stage Assumptions: In the growth stage, Meta's earnings per share (EPS) without non-recurring items is set at $23.38, with an expected growth rate of 22.70%, reflecting the company's strong growth potential over the next decade, which could drive stock price appreciation.
- Discount Rate Calculation: GuruFocus employs an 11% discount rate, which includes a 4.33% 10-year Treasury yield and a 6% risk premium; this choice of discount rate is crucial for assessing the present value of future earnings and impacts investor decision-making.
- Traditional Model Comparison: Using the traditional free cash flow model, Meta's intrinsic value is calculated at $560.10, showing a 4.23% margin of safety, indicating that under different valuation methods, Meta's market pricing holds a degree of reasonableness, prompting investors to consider multiple valuation models.
See More
Meta Tests Instagram Plus Subscription Service Offering Exclusive Features
- Subscription Service Testing: Meta is testing a premium subscription service called Instagram Plus on its Instagram app, allowing users to view Stories without notifying the poster, enhancing user privacy and potentially attracting more subscribers.
- New Feature Rollout: The subscription will offer unlimited audience list creation and the ability to see how many times a Story has been viewed, enhancing user engagement and content management capabilities, which may increase user retention.
- Market Testing Regions: The service is currently being tested in Mexico, Japan, and the Philippines, with pricing varying by country, demonstrating Meta's flexible pricing strategy aimed at maximizing user acceptance and market penetration.
- User Base Impact: With approximately 3 billion monthly active users, Instagram may account for about 40% of Meta's total revenue, and if successfully launched, this service could significantly boost the company's revenue and competitive position in the market.
See More
Corning and Meta Expand Optical Cable Manufacturing Capacity
- Collaboration Expansion: Corning and Meta broke ground on a new optical cable manufacturing facility in Hickory, North Carolina, marking a significant step in their up to $6 billion agreement aimed at accelerating the construction of advanced data centers in the U.S. to support Meta's AI objectives.
- Job Growth: The expansion is expected to increase Corning's employment in North Carolina by 15% to 20%, further solidifying the state's role as a manufacturing hub for optical fiber and cable while creating more quality jobs for the local community.
- Technological Innovation: Under the agreement, Corning will supply Meta with its latest innovations in optical fiber, cable, and connectivity solutions, ensuring a critical role in AI infrastructure and bolstering America's leadership in the AI sector.
- Long-term Partnership: As Corning celebrates its 175th anniversary, the company underscores the importance of its partnership with Meta, highlighting its ongoing investment in U.S. manufacturing and commitment to North Carolina's manufacturing leadership.
See More
Irenic Capital Proposes 600% Stock Value Increase for Snap
- Shareholder Recommendations: Irenic Capital Management has proposed a transformative plan to Snap's CEO Evan Spiegel, suggesting that implementing the '6 Steps to 7X' could potentially elevate Snap's stock price from $3.93 to over $26, which would significantly enhance the company's market value if successful.
- Layoffs and AI Utilization: The recommendations include cutting approximately 21% of the workforce, equating to 1,000 employees, while leveraging artificial intelligence to replace existing roles, which could lower costs and improve operational efficiency, thereby positively impacting the company's financial health.
- Business Restructuring Proposal: Irenic suggests shutting down or spinning off Snap's augmented reality glasses unit, Specs, arguing that it has not delivered the expected value, and such a move could help concentrate resources on more promising business areas.
- Shareholder Engagement and Future Outlook: Snap's chairman, Michael Lynton, stated that the company welcomes input from all shareholders and will continue to evaluate actions that drive long-term value, despite the fact that Snap's stock has declined by about 83% since going public in 2017.
See More
Irenic Capital Proposes 600% Increase for Snap Shares
- Stock Surge: Snap shares rose 13% following Irenic Capital's proposal, increasing from $3.93 to $4.44, indicating a positive market response to the potential for value enhancement.
- Strategic Recommendations: Irenic Capital's '6 Steps to 7X' plan aims to elevate Snap's stock price from $3.93 to $26.37, emphasizing workforce reduction by 21% and shutting down Specs as key measures.
- Layoffs and AI Utilization: The proposal suggests Snap should cut 1,000 employees and leverage artificial intelligence to replace existing roles, which could significantly improve the company's financial performance and operational efficiency.
- Long-term Value Commitment: Snap's chairman stated that the company welcomes shareholder input and will continue to evaluate actions that drive long-term value, despite the stock's decline of approximately 83% since its IPO in 2017.
See More
US Stocks Surge as Market Sentiment Improves
- Market Sentiment Improves: The S&P 500 index rose by 1.02%, the Dow Jones Industrial Average increased by 0.67%, and the Nasdaq 100 surged by 1.10% as President Trump signaled a willingness to end military actions against Iran, reflecting investor optimism over easing geopolitical risks.
- Falling Bond Yields: The 10-year Treasury note yield dropped to a one-week low of 4.30%, indicating market expectations that an end to the Iran conflict could lower energy prices and alleviate inflation concerns, further supporting stock market gains.
- Consumer Confidence Rises: The US March consumer confidence index unexpectedly increased by 0.8 to 91.8, surpassing expectations of a decline to 87.9, suggesting enhanced consumer confidence in economic prospects, which could drive spending and economic growth.
- Strong Chinese Economy: China's March manufacturing PMI rose to 50.4, exceeding expectations of 50.1, indicating signs of economic recovery that support global growth prospects and positively influence market performance.
See More
Meta Platforms Inc's Intrinsic Value Analysis
- Intrinsic Value Assessment: According to GuruFocus's Discounted Earnings model, Meta Platforms Inc's intrinsic value is estimated at $730.56, while its current trading price is $536.38, indicating a 26.58% margin of safety, suggesting the company is modestly undervalued and may attract investor interest.
- Growth Stage Assumptions: In the growth stage, Meta's earnings per share (EPS) without non-recurring items is set at $23.38, with an expected growth rate of 22.70%, reflecting the company's strong growth potential over the next decade, which could drive stock price appreciation.
- Discount Rate Calculation: GuruFocus employs an 11% discount rate, which includes a 4.33% 10-year Treasury yield and a 6% risk premium; this choice of discount rate is crucial for assessing the present value of future earnings and impacts investor decision-making.
- Traditional Model Comparison: Using the traditional free cash flow model, Meta's intrinsic value is calculated at $560.10, showing a 4.23% margin of safety, indicating that under different valuation methods, Meta's market pricing holds a degree of reasonableness, prompting investors to consider multiple valuation models.
See More
Meta Tests Instagram Plus Subscription Service Offering Exclusive Features
- Subscription Service Testing: Meta is testing a premium subscription service called Instagram Plus on its Instagram app, allowing users to view Stories without notifying the poster, enhancing user privacy and potentially attracting more subscribers.
- New Feature Rollout: The subscription will offer unlimited audience list creation and the ability to see how many times a Story has been viewed, enhancing user engagement and content management capabilities, which may increase user retention.
- Market Testing Regions: The service is currently being tested in Mexico, Japan, and the Philippines, with pricing varying by country, demonstrating Meta's flexible pricing strategy aimed at maximizing user acceptance and market penetration.
- User Base Impact: With approximately 3 billion monthly active users, Instagram may account for about 40% of Meta's total revenue, and if successfully launched, this service could significantly boost the company's revenue and competitive position in the market.
See More
Corning and Meta Expand Optical Cable Manufacturing Capacity
- Collaboration Expansion: Corning and Meta broke ground on a new optical cable manufacturing facility in Hickory, North Carolina, marking a significant step in their up to $6 billion agreement aimed at accelerating the construction of advanced data centers in the U.S. to support Meta's AI objectives.
- Job Growth: The expansion is expected to increase Corning's employment in North Carolina by 15% to 20%, further solidifying the state's role as a manufacturing hub for optical fiber and cable while creating more quality jobs for the local community.
- Technological Innovation: Under the agreement, Corning will supply Meta with its latest innovations in optical fiber, cable, and connectivity solutions, ensuring a critical role in AI infrastructure and bolstering America's leadership in the AI sector.
- Long-term Partnership: As Corning celebrates its 175th anniversary, the company underscores the importance of its partnership with Meta, highlighting its ongoing investment in U.S. manufacturing and commitment to North Carolina's manufacturing leadership.
See More
Irenic Capital Proposes 600% Stock Value Increase for Snap
- Shareholder Recommendations: Irenic Capital Management has proposed a transformative plan to Snap's CEO Evan Spiegel, suggesting that implementing the '6 Steps to 7X' could potentially elevate Snap's stock price from $3.93 to over $26, which would significantly enhance the company's market value if successful.
- Layoffs and AI Utilization: The recommendations include cutting approximately 21% of the workforce, equating to 1,000 employees, while leveraging artificial intelligence to replace existing roles, which could lower costs and improve operational efficiency, thereby positively impacting the company's financial health.
- Business Restructuring Proposal: Irenic suggests shutting down or spinning off Snap's augmented reality glasses unit, Specs, arguing that it has not delivered the expected value, and such a move could help concentrate resources on more promising business areas.
- Shareholder Engagement and Future Outlook: Snap's chairman, Michael Lynton, stated that the company welcomes input from all shareholders and will continue to evaluate actions that drive long-term value, despite the fact that Snap's stock has declined by about 83% since going public in 2017.
See More
Irenic Capital Proposes 600% Increase for Snap Shares
- Stock Surge: Snap shares rose 13% following Irenic Capital's proposal, increasing from $3.93 to $4.44, indicating a positive market response to the potential for value enhancement.
- Strategic Recommendations: Irenic Capital's '6 Steps to 7X' plan aims to elevate Snap's stock price from $3.93 to $26.37, emphasizing workforce reduction by 21% and shutting down Specs as key measures.
- Layoffs and AI Utilization: The proposal suggests Snap should cut 1,000 employees and leverage artificial intelligence to replace existing roles, which could significantly improve the company's financial performance and operational efficiency.
- Long-term Value Commitment: Snap's chairman stated that the company welcomes shareholder input and will continue to evaluate actions that drive long-term value, despite the stock's decline of approximately 83% since its IPO in 2017.
See More
US Stocks Surge as Market Sentiment Improves
- Market Sentiment Improves: The S&P 500 index rose by 1.02%, the Dow Jones Industrial Average increased by 0.67%, and the Nasdaq 100 surged by 1.10% as President Trump signaled a willingness to end military actions against Iran, reflecting investor optimism over easing geopolitical risks.
- Falling Bond Yields: The 10-year Treasury note yield dropped to a one-week low of 4.30%, indicating market expectations that an end to the Iran conflict could lower energy prices and alleviate inflation concerns, further supporting stock market gains.
- Consumer Confidence Rises: The US March consumer confidence index unexpectedly increased by 0.8 to 91.8, surpassing expectations of a decline to 87.9, suggesting enhanced consumer confidence in economic prospects, which could drive spending and economic growth.
- Strong Chinese Economy: China's March manufacturing PMI rose to 50.4, exceeding expectations of 50.1, indicating signs of economic recovery that support global growth prospects and positively influence market performance.
See More
