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
Should l Buy META?
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: 671.580
Low
655.15
Averages
824.71
High
1117
Current: 671.580
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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- Specific Price Adjustments: Effective April 19, the prices for the Meta Quest 3S (128GB) and (256GB) will increase by $50 to $349.99 and $449.99 respectively, while the Meta Quest 3 (256GB) will see a $100 increase to $599.99, with updated pricing also applying to refurbished units.
- Market Commitment: Despite the cost pressures, Meta reassured customers of its commitment to investing in virtual reality and leading the category, indicating a long-term strategic intent in technological innovation.
- Workforce Adjustments: Amid its pivot towards generative artificial intelligence, Meta recently cut 10% of its Reality Labs staff, which may impact its research capabilities and competitive position in the virtual reality market.
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- U.S. Homebuying Demand Recovery: As interest rates stabilize, homebuying demand in the U.S. has shown signs of recovery, particularly in major cities, with increased buyer confidence expected to drive a rebound in the real estate market.
- Financial Services Industry Shift: The financial services sector is undergoing a digital transformation, with more companies adopting blockchain technology to enhance transaction efficiency and transparency, a trend that could reshape the industry landscape.
- Market Participant Sentiment: Investor sentiment regarding market prospects is notably divided, with some analysts believing in the long-term potential of cryptocurrencies while others express concerns about the sustainability of the real estate market, reflecting overall market uncertainty.
See More
Snap's Stock Plummets 90% Amid Ongoing Challenges
- Stock Collapse: Snap's shares have plummeted approximately 90% over the past five years, indicating significant struggles in consistently growing revenue and achieving profitability amidst fierce competition from giants like Meta.
- Layoff Announcement: This week, Snap announced layoffs of about 16% of its full-time workforce, which is expected to reduce annual costs by over $500 million, highlighting the intense competitive pressures the company faces in the market.
- Weak Revenue Growth: Although Snap reported a 10% year-over-year revenue increase to $1.72 billion and a GAAP net income of $45 million in Q4 2025, the full-year net loss of $460 million underscores the fragility of its profitability.
- Stock-Based Compensation Dependence: Snap's stock-based compensation expenses approached $1 billion in 2025, and such high dilution could severely hinder the creation of meaningful shareholder value, posing long-term challenges for the company's profitability trajectory.
See More
Snap Lays Off 16% of Workforce to Cut Costs
- Layoff Announcement: Snap has announced a 16% workforce reduction, expecting to cut annualized costs by over $500 million, a move aimed at addressing profitability pressures while highlighting the challenges of operating in a highly competitive market.
- Shareholder Dilution: In 2025, Snap's stock-based compensation expenses approached $1 billion, severely diluting shareholder value and creating significant hurdles for the company in achieving sustainable profitability, despite a 10% year-over-year revenue increase to $1.72 billion in Q4.
- Profitability Challenges: While Snap reported a GAAP net income of $45 million in Q4 2025, it still posted a net loss of $460 million for the entire year, indicating the difficulties it faces in pivoting to a sustainable profitability model.
- Intensifying Competitive Pressure: With major tech companies like Meta aggressively investing in AI infrastructure, expected capital expenditures between $115 billion and $135 billion, Snap's market position is increasingly precarious, exacerbating its profitability challenges.
See More
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- Market Rebound Analysis: The S&P 500 index reached a record high in April, marking a significant recovery from the Iran war sell-off, indicating a renewed focus on company fundamentals despite the ongoing conflict, which underscores the importance of investor calmness.
- Nike Investment Reflection: Despite insider buying signals prompting us to increase our stake in Nike last December, we are now skeptical about CEO Elliott Hill's ability to turn the company around, and if next quarter's performance is disappointing, we will consider exiting.
- Amazon Cloud Business Recovery: Amazon's stock rebound highlights the importance of patience, as the market is gradually recognizing the strength of its AWS cloud division and online retail business, which are expected to continue growing in the future.
- Nvidia Market Leadership: Nvidia's leading position in the AI chip sector is paying off, and despite competitive pressures, its advantage in computing power positions it well to maintain market leadership going forward.
See More
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- Analyst Rating Upgrade: Bernstein analyst Stacy Rasgon maintains a market perform rating on AMD while raising the price target from $235 to $265, a modest 3% increase, yet the stock surpassed this new target early Thursday, reflecting strong market confidence in AMD.
- Product Shift: Rasgon notes that AMD will sell fewer PC chips and focus on higher-margin server and data center chips under current market conditions, a strategy that is expected to enhance the company's overall profitability.
- Key Partnership Agreement: The multi-year, multi-generation deal with Meta Platforms to deploy six gigawatts of custom AMD MI450 AI chips in its data center build-out presents significant growth opportunities for AMD, further solidifying its position in the AI market.
- Optimistic Market Outlook: Despite Rasgon's cautious stance, 73% of analysts rate AMD as a buy or strong buy, with an average price target of approximately $289, indicating widespread optimism about AMD's future growth, particularly driven by sustained demand in the AI sector.
See More
