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: 655.080
Low
655.15
Averages
824.71
High
1117
Current: 655.080
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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- Surge in Electricity Demand: The U.S. brought online a record 10 gigawatts of new data center capacity in 2025, with electricity demand increasing by 2.8% year-over-year, marking the fastest growth rate in nearly 20 years, highlighting the significant impact of AI infrastructure expansion on the power market.
- Lack of Enforcement Power: Despite the agreement, experts indicate that the pledge lacks legal force, as state regulators ultimately decide on electricity pricing structures, meaning the White House cannot enforce new policies.
- Positive Industry Response: Companies like Amazon and Microsoft have indicated they will cover the costs of their expanding electricity needs, reflecting the industry's recognition of public concerns regarding potential increases in household electricity costs due to AI infrastructure.
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- Ratepayer Protection Commitment: The Trump administration has signed a voluntary agreement with major tech companies to build or purchase the electricity needed for rapidly expanding data centers, covering the infrastructure costs to connect to the grid, thereby alleviating consumer electricity burdens.
- Surge in Electricity Demand: The U.S. brought online a record 10 gigawatts of new data center capacity in 2025, with electricity demand increasing by 2.8% year-over-year, marking the fastest growth rate in nearly 20 years, highlighting the significant impact of AI infrastructure expansion on the power market.
- Lack of Enforcement Power: Despite the agreement, experts indicate that the pledge lacks legal force, as state regulators ultimately decide on electricity pricing structures, meaning the White House cannot enforce new policies.
- Positive Industry Response: Companies like Amazon and Microsoft have indicated they will cover the costs of their expanding electricity needs, reflecting the industry's recognition of public concerns regarding potential increases in household electricity costs due to AI infrastructure.
See More
Marvell Stock: Increased AI Data-Center Investment May Enhance Earnings
Financial Boost: Marvell Technology's fourth-quarter financials are expected to improve due to ongoing demand for hardware that supports artificial intelligence.
Customer Demand: The increasing need for AI-related technology is driving customer purchases, positively impacting Marvell's revenue.
See More
Meta Expands Custom Silicon Efforts for AI Model Training
- Custom Silicon Strategy: Meta plans to expand its custom silicon applications from simple recommendation algorithms to complex AI model training, aiming to enhance performance and efficiency while reducing reliance on third-party suppliers like Nvidia and AMD.
- Personalized Workloads: CFO Susan Li noted that some of Meta's workloads are highly customized, particularly those related to AI models and personalized recommendations, indicating that tailored hardware will better meet its unique needs.
- AI Training Chip Testing: Testing for Meta's first in-house AI training chip is expected to begin in early 2025, and despite setbacks with advanced designs like Olympus in February, the company aims for a 2026 rollout for generative AI.
- Alignment with Industry Trends: This initiative aligns with broader industry trends to optimize AI infrastructure costs and performance, signaling Meta's pursuit of a competitive edge in the rapidly evolving AI landscape.
See More
Broadcom Projects AI Chip Revenue Exceeding $100 Billion Next Year
- Surge in AI Revenue: Broadcom reported a more than 100% year-over-year increase in AI revenue for Q1, reaching $8.4 billion, demonstrating the company's robust performance amid the AI boom, which is expected to drive sustained future growth.
- Strong Earnings Guidance: The company achieved a 29% increase in total sales to $19.3 billion in Q1, surpassing analyst expectations, with CEO Hock Tan projecting AI semiconductor revenue of $10.2 billion for the current quarter, further solidifying its market leadership.
- Rising Customer Demand: As large customers increasingly require custom silicon, Broadcom has secured the supply chain necessary to meet its 2027 sales targets, indicating strategic readiness to fulfill market demands.
- Key Customer Collaborations: Broadcom is assisting six major clients, including Google, Meta, Anthropic, and OpenAI, in chip design, which is expected to accelerate the next phase of custom AI deployment and further drive company growth.
See More
Trump's New Policy Boosts Cryptocurrency Market
- Policy Initiative: President Trump has called on major tech and AI companies to secure the energy needed for data center construction, requiring them to bear the full costs of energy and infrastructure, thereby creating a favorable environment for the cryptocurrency market and likely attracting more investor interest.
- Market Reaction: Following Trump's announcement, Shiba Inu (SHIB) saw a 2.84% price increase, reaching a market cap of $3.3 billion, indicating a rebound in market confidence towards cryptocurrencies, particularly in light of supportive policies.
- Industry Impact: The implementation of this new policy will block anti-crypto mining legislation, alleviating potential impacts on ordinary consumers and further solidifying the Trump administration's image as crypto-friendly.
- Future Outlook: With more major tech companies signing the pledge, we can expect additional top-down policy support for digital currencies, benefiting not only meme coins like Shiba Inu but also other more 'serious' cryptocurrencies.
See More
Nvidia vs AMD: The AI Market Showdown
- Market Share Comparison: Nvidia commands an impressive 86% market share in AI data center revenue, compared to AMD's mere 7%, highlighting Nvidia's dominant position in the data center processor market, which is likely to attract more customers in the future.
- Major Deal Impact: AMD's agreement with Meta to supply up to 6 gigawatts of AI data center processing, valued at over $100 billion, represents a significant win for AMD; however, its high stock valuation raises concerns among investors.
- Financial Performance Divergence: Nvidia's recent Q4 fiscal 2026 results revealed a 65% increase in sales to nearly $216 billion, with adjusted earnings rising 60% to $4.77 per share, indicating strong growth momentum in the AI sector.
- Valuation Comparison: Nvidia's P/E ratio stands at 53, which, while above the tech sector average, is significantly lower than AMD's 101, making Nvidia a more attractive investment in the AI stock landscape given its robust financial performance.
See More
