All articles tagged with #meta platforms
AMD inks a strategic, warrant‑heavy deal with Meta to supply Instinct AI chips for Meta’s data centers and signal a broader push to win over other hyperscalers; the arrangement could help AMD hit a tenfold data‑center revenue target by 2030, but the upside relies on Meta’s adoption and on rival AI‑chip demand amid competition and the cost of warrants.
Advanced Micro Devices jumped after unveiling a multiyear agreement to supply Meta with 6 gigawatts of GPUs for Meta’s AI infrastructure, plus a performance-based warrant for up to 160 million AMD shares (~10% stake), signaling a bold push into AI data centers and potentially widening the gap with Nvidia despite dilution concerns.
U.S. stocks rebounded from Monday’s AI- and tariff-related pressure, with the Nasdaq up about 1%, the S&P 500 around 0.6%, and the Dow about 0.8%, as AMD led a tech rally after expanding its AI‑chip deal with Meta; Nvidia earnings loom and software names rose on AI partnerships amid ongoing trade uncertainty.
Meta has struck a multibillion-dollar deal with AMD to buy 6 gigawatts of custom MI450 AI chips to accelerate its AI models, while AMD granted Meta a performance-based warrant to buy up to 160 million AMD shares at $0.01, with the first tranche due in H2 as the initial gigawatt ships; the arrangement could yield about a 10% stake in AMD over time, echoing OpenAI’s deal, and sent AMD stock higher pre-market. Meta plans to spend up to $135bn on AI infra this year and seeks to diversify beyond Nvidia, using the chips mainly for inference workloads that require 6GW; the warrant expires Feb 2031 and final tranche triggers at $600 per share.
Moody's warns that current US accounting rules may hide tens of billions in data-centre liabilities for Big Tech by allowing SPV-backed structures and renewal guarantees to stay off balance sheets; lease renewals and residual value guarantees may not be fully recorded unless deemed probable or reasonably certain. Meta and Oracle are among users; Meta's Hyperion facility via Beignet Investor involves a four-year lease with renewal options up to 20 years and RVG guarantees up to $28bn not recorded as of end-2025. Moody's would adjust debt to reflect likely renewal periods or RVG triggers, which could affect credit ratings and access to funding for AI data centres.
Meta’s 2026 capex is set to reach roughly $115–$135 billion, funding Nvidia GPU/Grace CPU deployments that will power its AI infrastructure; Nebius Group, a Nebius cloud partner and Meta customer, is forecast to grow revenue to about $3.4 billion in 2026 from $530 million in 2025, bolstered by a backlog over $20 billion, expansion to 16 data-center sites, and 0.8–1 gigawatt of capacity as demand for cloud AI ramps up.
Nvidia’s expanded, multiyear partnership with Meta Platforms signals a sustained wave of AI infrastructure spending, with deployments spanning Grace CPUs, Blackwell GPUs, Rubin components, Spectrum-X networking and Confidential Computing for WhatsApp. Stifel analyst Ruben Roy argues the deal could involve tens of billions in Nvidia infrastructure spend and reinforces Nvidia’s long-term AI platform roadmap, backing a Buy rating with a $250 target, as the broader market remains bullish on accelerating AI capital expenditure.
Meta Platforms is reviving its shelved smartwatch project, code-named Malibu 2, with plans for a 2026 launch that includes health-tracking features and a built-in Meta AI assistant, positioning it to compete with Apple and Google’s wearables.
Meta has agreed to spend billions in a multiyear deal to buy Nvidia’s next‑generation chips, including Vera Rubin GPUs and standalone CPUs, to expand its AI infrastructure while continuing work on in‑house processors. The arrangement reinforces Nvidia’s lead in AI data‑center hardware even as rivals like AMD and tech giants such as Google and Microsoft push self‑developed chips. Meta’s AI investment is expected to be substantial, with estimates of up to $135 billion in AI infrastructure this year, highlighting a broader industry shift toward inference workloads and greater chip self-reliance, despite ongoing rollout challenges for Meta’s own designs.
Hedge fund Pershing Square, led by Bill Ackman, posted a 34% return last year and is backing a roughly $2 billion stake in Meta Platforms, arguing that AI-driven efficiency and long‑term upside justify the bet despite an AI-driven market selloff. Ackman positions Meta as a Buffett-like value play at about 27x earnings, noting recent AI spending could pay off over time. The move follows prior bets such as on Amazon, and adds a concentrated, high-conviction stake to Pershing’s portfolio.
Bill Ackman’s Pershing Square has about 23% of its capital tied up in two AI-focused stocks, Amazon (13% of the portfolio) and Meta Platforms (10%). Wall Street targets suggest roughly 43% upside for Amazon to around $285 and about 32% upside for Meta to roughly $850 over the next year, driven by AI-enabled growth in AWS, e-commerce optimization, and ad-tech innovations. The bets reflect a view that both companies will benefit from AI, with investors often advised to consider small positions.
Tech earnings season is in full swing with Meta Platforms reporting record quarterly sales and higher 2026 spending, lifting its stock; Tesla is canceling two high-end models and shifting toward robotics with a $2 billion investment in xAI, sending its shares lower; Microsoft is also in focus as part of the week’s earnings reports, with about 102 S&P 500 companies detailing results.
U.S. stock futures edged lower after the Fed held rates at 3.50%-3.75%, marking the first pause after three cuts; S&P 500 futures fell about 0.2%, Dow futures ~0.3% lower, and Nasdaq futures were flat. In after-hours trading, Meta Platforms jumped about 8% on a stronger-than-expected revenue outlook, while Microsoft slid roughly 7% as cloud growth cooled and AI spend pressured margins. The regular session ended largely flat as investors await Apple, Caterpillar, and Lockheed Martin results later in the week, with traders still penciling in two additional rate cuts this year but receiving little clarity from the Fed.
Meta Platforms beat fourth‑quarter expectations with $59.9 billion in revenue and $8.88 per‑share, driven by a 7% rise in daily active users to 3.58 billion and higher ad impressions. The company reiterated its AI‑driven strategy, detailing 2026 capex of $115–$135 billion to expand AI infrastructure, while Reality Labs losses are expected to stay near 2025 levels. For Q1, management guided revenue around $55 billion (about 30% year‑over‑year growth), signaling continued momentum under its AI‑centric approach.
Meta Platforms reported fourth-quarter 2025 revenue of $59.9B and full-year revenue of $201.0B, with Q4 net income of $22.8B and full-year net income of $60.5B. Revenue growth was driven by advertising across its Family of Apps, while Reality Labs remained loss-making. The company provided 2026 guidance—Q1 revenue of about $53.5-56.5B, total 2026 expenses of $162-169B, and capex of $115-135B—as it expands AI initiatives including Meta Superintelligence Labs, while noting regulatory headwinds in the EU and U.S. Meta also highlighted strong cash flow and a headcount near 78,865.