By Adam Levy
Publication Date: 2026-03-05 12:00:00
Key Points
Meta signed deals to put both Nvidia and AMD chips in its data centers in February.
The deals enable Meta to optimize its hardware for specific AI tasks.
All three companies may benefit from these deals, but one stock stands out as a great opportunity.
- 10 stocks we like better than Meta Platforms ›
Meta Platforms (NASDAQ: META) shocked investors when it announced plans to spend between $115 billion and $135 billion on capital expenditures this year, mostly on its artificial intelligence buildout. That’s an 87% year-over-year increase in spending at the high end of its guidance.
Some of the biggest beneficiaries from Meta’s massive budget are chipmakers. Meta recently announced two contracts with Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) to use their GPUs and CPUs in its data centers, each worth tens of billions of dollars.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
Here are the details investors need to know.
Image source: Meta Platforms.
Different chips for different jobs
Meta’s AI efforts are quite expansive. Its Llama large language model (LLM) gets a lot of headlines, but Meta’s entire business is built on AI algorithms for determining exactly what content to show which users and when. With the massive scale of its operations (over 3.5 billion…
