Meta PDG Mark Zuckerberg (L) and CEO of Microsoft Satya Nadella.
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Actions of Meta closed up 11% and Microsoft Closed by 4% on Thursday, after companies declared better than expected income that beat up and down.
Meta and Microsoft have invested massively in artificial intelligence infrastructure in recent years, and companies have declared that they expect to continue to pay billions of capital expenses.
Meta said capital expenses will be between $ 66 billion and $ 72 billion for the full year, increasing the company’s previous estimate between 64 billion and $ 72 billion. Microsoft sees more than $ 30 billion in capital expenses and assets in the first tax quarter acquired by financial leases, while analysts interviewed by Visible Alpha expected $ 24.23 billion.
Citi analysts have said that the increase in capital spending on companies will likely be a boon for flea manufacturers. Microsoft represents about 8% of Advanced micro-apparents“Sales, while the meta represents about 2% of Broadcom Sales, analysts said.
“We think that avo and AMD will be the main beneficiaries of the increase in the Capex of Microsoft and Meta,” they wrote in a note on Thursday.
In addition to the increase in capital expenditure, the meta-PDG Mark Zuckerberg was on an AI hiring blitz, highlighted by an investment of $ 14.3 billion in the data label start-up scale and the launch of its new meta monitoring laboratory unit.
Morgan Stanley analysts said they “applaud the effort” and were satisfied with the state of Meta’s main activities, but they remain a little suspicious of Zuckerberg’s IA expenses.
“On the one hand, the core business is so strong that it pays several times for all the new talents and the infra of AI, but on the other hand, the cavalier nature by which Zuckerberg launches money is a little annoying, especially if things do not come together as planned with the new team of superinviligence,” wrote analysts.
Barclays analysts said that the generative scaling of Microsoft AI is still taking place, but the high demand for its data center infrastructure continues to point the continuous momentum for future neighborhoods. They maintained their overweight note on the stock.
“With its strong results of the Q4 FY25, MSFT confirmed its unique status in the software space and will probably continue to be one of the main assets of investors,” they wrote in a note on Wednesday.
Microsoft said $ 76.44 billion in revenue for its fourth tax quarter, up 18% from one year to the next. The company said net profit increased to $ 27.23 billion, or $ 3.65 per share, compared to $ 22.04 billion a year ago.
Meta said $ 47.52 billion in revenue for its second quarter, up 22% from one year to the next. Its net profit increased by 36% from one year to the next to $ 18.34 billion, or $ 7.14 per share.
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