Meta, Amazon, Palantir Fuel AI Data Center Boom — ETFs Are The Sleeper Bet
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 17 2025
0mins
Source: Benzinga
AI's Impact on Power Demand: Major tech companies are investing heavily in AI, leading to a projected 165% increase in global data center electricity demand by 2030, prompting investors to consider power generation and infrastructure-related ETFs.
Investment Opportunities in Infrastructure: As the demand for data centers rises, ETFs focused on utilities, infrastructure, and digital real estate are becoming increasingly relevant, with companies like Meta planning significant expansions that will drive growth across various sectors.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 670.910
Low
655.15
Averages
824.71
High
1117
Current: 670.910
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Revenue Growth Potential: The paid messaging service on WhatsApp has proven lucrative for parent company Meta, with a reported 54% increase in revenue from its family of apps in Q4, indicating strong growth potential, and the WhatsApp Business API is expected to generate approximately $2 billion in annual revenue this year.
- Fast-Growing Segment: As one of Meta's fastest-growing segments, WhatsApp is further solidifying its market position by launching new features and services, reflecting the company's strategic focus on enhancing user engagement and increasing revenue.
See More
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- Software Deployment: Meta is installing new tracking software on U.S. employees' computers to capture mouse movements, clicks, and keystrokes for training its AI models, indicating the company's ongoing investment and innovation in AI technology.
- Model Capability Enhancement: The tool, named Model Capability Initiative (MCI), aims to improve AI models' performance in simulating human-computer interactions, particularly in dropdown menu selections and keyboard shortcuts, reflecting Meta's focus on enhancing AI work efficiency.
- Increased Data Collection: Meta CTO Andrew Bosworth mentioned in an internal memo that the company would ramp up internal data collection as part of its
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- Interest Rate Policy Controversy: Warsh expressed a desire to quickly lower interest rates to 1%, a stance that has sparked dissent within the Fed, although he believes such controversy may aid his reform efforts, reflecting his dissatisfaction with current policies and influence over the market.
- Response to Trump: During the hearing, Warsh attempted to alleviate concerns regarding his relationship with Trump, emphasizing that the president did not specifically instruct him on any interest rate path, indicating his desire to gain trust in terms of independence and transparency.
- Rebuilding Market Confidence: Warsh argues that the Fed has lost credibility, stressing the need for reforms to restore market confidence in the economy, particularly after a prolonged low-interest-rate environment following the 2008 financial crisis, which could affect future economic growth and market stability.
See More
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- Data Collection Purpose: The tool will operate on a list of work-related apps and websites, occasionally taking snapshots of employees' screens to provide context for the models, aiming to improve performance in areas like dropdown menu selection and keyboard shortcut usage.
- Employee Involvement: Meta encourages employees to assist in model improvement through their daily work, emphasizing the importance of real user data for training AI, which not only enhances the utility of the AI but also fosters employee engagement.
- Data Security Measures: A Meta spokesperson stated that the collected data will solely be used for model training and not for performance assessments, with safeguards in place to protect sensitive content, ensuring employee privacy is respected.
See More
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- AI Infrastructure Investment: Meta is making significant investments in AI infrastructure, which is expected to enhance overall platform performance and user experience, thereby increasing user engagement and driving advertising revenue growth.
- Smart Glasses Strategy: The company's foray into smart glasses may integrate with its AI technologies, creating more appealing products that could further expand market share and enhance brand influence.
- Platform Monetization Potential: Meta's diversified strategy focuses not only on technological innovation but also on monetization capabilities, which is expected to yield substantial long-term benefits, although short-term cost pressures may pose challenges.
- Market Expectation Challenges: While the market remains cautious about Meta's future, if the synergy between AI and smart glasses can quickly materialize, it could exceed market expectations and drive stock price recovery.
See More
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- Subscription Cost Reduction: Microsoft has announced a reduction in the monthly fee for Game Pass Ultimate from $29.99 to $22.99, and for PC Game Pass from $16.49 to $13.99, aiming to attract more players and enhance user satisfaction.
- Content Changes: Upcoming titles in the 'Call of Duty' franchise will no longer be included in the subscriptions, requiring players to purchase them separately at a price of $69.99, which may impact short-term user retention rates.
- Revenue Decline: Although gaming contributed 7% to Microsoft's total revenue in Q4, the segment's revenue fell approximately 10% year-over-year, contrasting sharply with growth in Azure and Microsoft 365, highlighting increased market competition pressures.
- Strategic Restructuring: New gaming chief Asha Sharma indicated that Game Pass had become too expensive, and this adjustment is a direct response to player feedback, reflecting Microsoft's strategic shift in the gaming market aimed at restoring user trust and increasing market share.
See More
