Meta Platforms has been upgraded from Hold to Buy following a 26% drop in its stock price, which now offers a margin of safety despite increased capital expenditure risks. The company's core advertising business, which makes up 98% of its revenue, continues to grow robustly, boosted by AI-driven improvements in ad pricing and efficiency. AI investments have already resulted in a 22% increase in return on ad spend (ROAS) and better ad metrics, supporting expectations for mid-teens free cash flow growth. Although litigation related to youth safety presents a significant long-term risk, the current valuation implies that Meta only needs to sustain a 15.7% annual free cash flow growth for the next decade to justify its price.
The AI infrastructure boom is evolving as access to electricity, data-center capacity, and financing become as critical as computing power. Nebius Group aims to reach over $41 billion in annual recurring revenue by 2030, driven by a target of 5 gigaw...
SpaceX's decision to build its AI infrastructure on NVIDIA's Vera Rubin platform, claiming 20% of NVIDIA's next-gen capacity, signals NVIDIA's advantage in allocation control rather than AMD's decline. Despite losing SpaceX, AMD reported strong Q2 re...
Broadcom's stock fell nearly 13% in one week due to rising 10-year Treasury yields impacting AI-related stocks. Despite this, the company shows strong fundamentals with AI semiconductor revenue up 143% year-over-year and a robust order pipeline exten...
Meta Platforms is deploying a new technology called CXL to recycle older DDR4 memory modules in newer DDR5 servers. This approach helps Meta manage rising DRAM prices and reduces the total cost of ownership for its server hardware. By creatively reus...
Meta Platforms is investing heavily, with $31.1 billion spent in Q2 and a raised 2026 capex forecast of $130-$145 billion, aiming to develop advanced AI models. CEO Mark Zuckerberg indicated the company is close to launching frontier-class AI, emphas...
