Meta Platforms’ (META) spending on artificial intelligence (AI) could exceed $600 billion over the next three years, according to CEO Mark Zuckerberg.
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Zuckerberg wrote on social media that it is “quite possible” his company will invest more than $600 billion in the U.S. through 2028 if AI progress keeps accelerating. The Meta CEO added that planned investments in AI through 2030 will be “significantly higher” than initial forecasts.
The massive AI spending is expected to benefit U.S. chipmakers such as Nvidia (NVDA) and Broadcom (AVGO). Meta Platforms is one of the biggest buyers for Nvidia’s processors and has previously said it expects to end the year with more than 1.3 million chips to fill several data center clusters it has developed.
In-house Chips
Meta Platforms is also in the process of expanding the use of its in-house MTIA chips that are being developed jointly with Broadcom. Those microchips will be used to help train AI models. Other beneficiaries of Meta’s heavy AI spend include Arista Networks (ANET) and Astera Labs (ALAB), which are involved in the data center boom.
In June of this year, Meta Platforms signed a 20-year deal to source energy from Constellation Energy’s (CEG) nuclear plant in Illinois. The big capital expenditures by Meta Platforms haven’t hurt the company’s stock, which is up 30% this year.
Is META Stock a Buy?
The stock of Meta Platforms has a consensus Strong Buy rating among 47 Wall Street analysts. That rating is based on 41 Buy and six Hold recommendations issued in the last three months. The average META price target of $872.30 implies 14.58% upside from current levels.
