Mark Zuckerberg's $65 Billion Bet 'Benefits' Nvidia And Other AI Players: Top Analyst Warns 'The Run Will

Deepwater Asset Management’s Gene Munster says Meta Platform Inc.’s (NASDAQ:META) plans to invest up to $65 billion this year to expand its AI infrastructure will benefit Nvidia Corp. (NASDAQ:NVDA) and other hardware players.

What Happened: Meta CEO Mark Zuckerberg on Friday outlined the company’s capital spending plans for 2025 and its focus on artificial intelligence (AI).

Zuckerberg expects Meta to allocate between $60 billion and $65 billion for capital spending, primarily aimed at expanding the company's AI teams and building a new data center. he described the new data center as being “so large that it would cover a significant part of Manhattan.” The tech mogul further noted that Meta aims to bring a gigawatt of computing power online by 2025 and is projected to finish the year with over 1.3 million graphics processing units.

Weighing in on the announcement, Munster said Meta’s commitment “exceeds Street estimates of $51B.”

"In 2025, I expect Meta AI will be the leading assistant serving more than 1 billion people, Llama 4 will become the leading state of the art model, and we'll build an AI engineer that will start contributing increasing amounts of code to our R&D efforts," Zuckerberg said.

According to Munster, the increased investment in AI infrastructure will particularly benefit Nvidia and other hardware players in the short term. In the long term, the higher capital expenditure (Capex) is expected to accelerate the AI flywheel, leading to more innovation, lower usage costs, an increase in customers, and consequently, more investment.

He also issued a reminder, stating, “I believe the market is going higher and the run will end in a spectacular bubble burst.”

Why It Matters: Zuckerberg’s announcement comes on the heels of Meta’s recent AI advancements. In December, Meta introduced the Llama 3.3 70B, a new AI model that outperforms competitors like Alphabet Inc.‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google, OpenAI, and Amazon.com, Inc. (NASDAQ:AMZN). This model offers the performance of Meta's largest Llama model, Llama 3.1 405B, but at a reduced cost.

Last year in April, Meta announced its plan to purchase 350,000 Nvidia H100 GPUs by 2024 to fuel its AI initiatives. Zuckerberg then said the 350,000 Nvidia H100 GPUs were initially intended to enhance Instagram Reels, not to position Meta as a leader in AI technology.

Meanwhile, President Donald Trump criticized the European Union (EU) for focusing on U.S. tech giants like Meta, Apple, and Google. He accused EU regulators of unfairly targeting these companies, calling their actions “a form of taxation.”

Price Action: Meta Platform’s stock closed at $647.49 on Friday, down 0.20% for the day, according to Benzinga Pro data.

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