Meta Platforms Inc. (NASDAQ: META) has a plan to stop writing quite so many checks to Nvidia. The company intends to deploy its latest in-house artificial intelligence chip in data centers during the first half of 2027, according to a Bloomberg report Monday. The pitch: lower costs and less energy consumption as Meta's AI infrastructure keeps ballooning.

Building Its Own Silicon

Meta is currently testing the third generation of its chip line, the MTIA 450, which goes by the code name Arke. The company first announced its custom AI chip ambitions back in 2023, so this is not a sudden pivot. It is a slow, deliberate march toward vertical integration.

The next processor, the MTIA 500, code-named Astrid, should wrap up design work in about a month. Meta expects to deploy it by the end of 2027.

To get there, Meta is working with Broadcom Inc. (AVGO) on chip designs and Taiwan Semiconductor Manufacturing Company Ltd. (TSM) on production. The whole effort could reduce Meta's reliance on NVIDIA Corporation (NVDA) processors, which have become the industry's default and, by extension, one of the most expensive line items in any AI budget.

Yee Jiun Song, Meta's vice president of engineering, said the custom chips aim to deliver better performance per watt and per dollar. That is the entire ballgame in AI infrastructure right now. Everyone wants more compute for less money and less power draw.

Meta One Arrives

Separately, Meta on Tuesday launched Meta One, a subscription service offering expanded AI access and premium features across Instagram, Facebook, WhatsApp and Meta AI. The core experience will remain free, which is probably wise given that Meta's entire business model depends on keeping billions of people inside its apps.

Meta One launches with more than 50 features and has recorded 15 million subscriptions and trials to date. Paid plans offer higher AI usage, including image and video generation, as well as tools for creators and businesses.

Plans are available globally. Single-product subscriptions start at $2.99 per month, individual bundles at $7.99 and creator and business bundles at $14.99.

Stock Performance And Technical Analysis

Meta stock was little changed on Tuesday as megacap growth stocks faced a broader risk-off session. The Nasdaq fell 0.60%, while the S&P 500 lost 0.52%.

The stock remains above its key long-term trend gauges. It is 11.8% above its 20-day simple moving average of $595.06 and 6.7% above its 200-day SMA of $623.64.

However, momentum looks stretched. Meta's relative strength index stands at 71.02, putting the stock in overbought territory. An RSI above 70 can signal increased pullback risk after a strong rally.

The longer-term setup remains mixed. The stock still carries a death cross from December 2025, when its 50-day SMA moved below the 200-day SMA. Therefore, it could remain volatile until its longer-term averages strengthen.

Key resistance sits near $673, while support is around $556.50.

Earnings And Analyst Outlook

Meta carries a Buy consensus rating with an average price forecast of $774.58.

Wedbush maintained a Neutral rating on Sept. 14 and raised its price forecast to $650. JPMorgan upgraded Meta to Overweight on Sept. 10 and raised its price forecast to $820. On Sept. 1, Wedbush maintained Neutral with a $595 price forecast.

The stock trades at a price-to-earnings ratio of 25.1.

MarketDash Edge Rankings

Meta's MarketDash Edge scorecard shows strong Growth and Quality scores of 79.54 and 71.43, respectively. Momentum stands at 42.53, while Value is 49.76.

The readings point to a growth-and-quality profile. However, moderate momentum and an overbought RSI suggest the stock could consolidate after its recent rally.

Top ETF Exposure

The First Trust Dow Jones Internet Index Fund (NYSE: FDN) has a 9.46% Meta weighting. The Invesco AI and Next Gen Software ETF (NYSE: IGPT) holds 8.91%, while the Global X Social Media ETF (NASDAQ: SOCL) has an 8.76% weighting.

Meta's large weight in these ETFs means fund inflows and outflows can contribute to buying or selling pressure in the stock.

Price Action

META Stock Price Activity: Meta Platforms shares were down 0.05% at $665.23 at the time of publication Tuesday, according to market data.