Key Takeaways
- NVIDIA shares saw a boost in after-hours trading.
- Meta Platforms raised its planned 2025 spending budget (capex), largely for AI.
- The new budget range is $64-72 billion, up from $60-65 billion.
- This move helps ease concerns about a potential slowdown in AI investment by major tech companies.
Shares of AI chip leader NVIDIA got a lift after the market closed Wednesday.
The bump came after tech giant Meta Platforms announced it’s increasing its spending plans for 2025, primarily due to artificial intelligence initiatives.
Meta now expects its capital expenditures for the full year 2025 to fall between $64 billion and $72 billion. This is a notable increase from its previous forecast of $60 billion to $65 billion.
According to Investing.com, Meta stated the rise reflects more investment in data centers to power its AI efforts and higher expected costs for infrastructure hardware.
While AI spending is increasing, Meta emphasized that the majority of its capital expenditures next year will still support its core business operations.
This news counters recent worries that major tech companies, often called hyperscalers, might pull back on AI spending as they look for more cost-effective ways to develop the technology.
