Meta at ATH after Announcing Massive $65B CapEx Plan for AI Push 📈

Meta Platforms is dramatically scaling up its artificial intelligence ambitions, announcing plans to spend $60-65 billion in capital expenditures for 2025 - a stunning 70% increase from previous guidance. This aggressive investment plan, focused heavily on AI infrastructure, comes as the company aims to establish itself as a leader in the increasingly competitive AI landscape.

Key Points:

• Capital expenditure guidance raised to $60-65B for 2025 (vs. $38-40B in 2024)

• Plans for massive new data center with 2+ gigawatt capacity

• Targeting 1.3 million GPUs by end of 2025

• AI assistant aimed at serving over 1 billion users

• Analysts estimate $22.5-33B could be allocated to GPU purchases

Infrastructure Expansion 

Meta's ambitious plan centers around constructing a massive new data center that CEO Mark Zuckerberg says could "cover a significant part of Manhattan." The facility will bring approximately 1 gigawatt of computing power online in 2025, supporting the company's goal of reaching over 1.3 million GPUs by year-end.

Strategic AI Focus 

The investment surge reflects Meta's determination to advance multiple AI initiatives, including:

• Developing Meta AI to become "the leading assistant" serving over 1 billion users

• Launching Llama 4 model, which they expect to achieve state-of-the-art performance

• Creating an AI engineer capability to enhance code development

• Significantly expanding AI teams despite broader company restructuring

Market Response 

While the spending increase surprised analysts who had projected $51.4B in 2025 CapEx vs. $38-40B in 2024, market reaction has been largely positive. Meta shares rose modestly to ATH (+1.3%) following the announcement, suggesting investors support the company's aggressive AI strategy. 

Industry Context 

Meta's announcement comes shortly after the Stargate initiative - a $500B AI infrastructure project involving OpenAI, Oracle, and SoftBank. This intensifying race for AI dominance has tech giants dramatically scaling up their infrastructure investments, though Zuckerberg acknowledged last summer that companies might be collectively overbuilding in the sector.

With this unprecedented capital commitment and clear strategic focus on AI development, Meta appears positioned to compete aggressively in the evolving AI landscape, leveraging its massive user base and technical capabilities to drive innovation and maintain its competitive edge.

META.US (D1 Interval)

With Meta stock trading at an all-time high (ATH), bears will aim for a retest of previous highs at $632.5. If this level is breached, the stock might revisit the 30-day SMA, with strong support at the 50-day SMA at $599.54, which has served as robust support throughout the past month in the uptrend.

The RSI is gradually approaching the oversold zone while exhibiting strong bullish divergence, signaling potential strength. Additionally, the MACD has shown a clear bullish signal, further reinforcing the possibility of continued upward momentum. Source: xStation