Published: February 2, 2024, 1:24 PM ET
Analysts say Nvidia is a “clear beneficiary” of Metaplatforms’ massive spending on artificial intelligence.
Facebook’s parent company expects to spend $30 billion to $37 billion in capital spending this year, up from a previous forecast of $30 billion to $35 billion. The new outlook “reflects our evolving understanding of AI capacity demands as we anticipate what the next generation of basic research and product development will require,” Chief Financial Officer Susan said. states…
Analysts say Nvidia is a “clear beneficiary” of Metaplatforms’ massive spending on artificial intelligence.
Facebook’s parent company expects to spend $30 billion to $37 billion in capital spending this year, up from a previous forecast of $30 billion to $35 billion. The new outlook “reflects our evolving understanding of AI capability demands as we anticipate what the next generation of basic research and product development will require,” the chief financial officer said. said Susan Lee in a Meta presentation.
meta
Financial results announced on Thursday afternoon.
Speaking of Meta’s spending plans this year, Wells Fargo analyst Aaron Lakers feels NVIDIA is “increasingly confident” in it.
NVDA
could lead to an upside to the January quarter results.
He also noted that training and operating future AI models will require an unknown amount of even more computing power, although Meta did not provide any projections for capital spending beyond 2024. He also mentioned what he did. CEO Mark Zuckerberg said the company is “fighting to win.”
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While Meta stock soared 22% in Friday trading and was on its way to a new record, Nvidia stock was experiencing an equally impressive rally. Semiconductor stocks rose 5% in afternoon trading, on track to hit a new all-time high.
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The Lakers also saw other winners from Meta’s AI spending, including Advanced Micro Devices.
AMD
,
Arista Networks Co., Ltd.
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and Pure Storage Co., Ltd.
PSTG
.
Meta has introduced AMD’s AI accelerators, Arista is a “key beneficiary” of Meta’s adoption of Ethernet into its backend AI fabric, and Pure Storage appears to be “well-positioned” as a flash supplier.
All three stocks rose about 4% in Friday afternoon trading.
