JPMorgan thinks 1 gigawatt of compute capacity could generate around $20 billion in annual revenue and multiple dollars of EPS for Meta, should it decide to launch a cloud infrastructure business. Bloomberg reported earlier this week that Meta was considering the move. But the analysts also believe it signals a lack of traction in the company's proprietary artificial-intelligence work. "We'd much prefer that Meta develop core AI products, leverage them over its base of 4B users, & require massive compute for its own inference rather than selling access to its infrastructure," the analysts say in a note. "It still suggests to us that Meta's AI product traction beyond advertising remains limited." Meta falls 4.6%.(elias.schisgall@wsj.com)