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: 676.870
Low
655.15
Averages
824.71
High
1117
Current: 676.870
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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- Decentralization Strategy: An OpenAI spokesperson stated that the company is decentralizing OpenAI for Science to better align its work with teams developing leading model capabilities, products, and infrastructure, thereby enhancing R&D efficiency and market responsiveness.
- Medical Leave and Recovery: Prior to the departures, OpenAI's product and business chief Fidji Simo announced a medical leave due to a worsening neuroimmune condition, raising concerns about executive health that could affect investor confidence.
- Closure of Sora Project: Following its successful launch, the short-form video app Sora was shut down as OpenAI aims to cut costs and reallocate computing resources in preparation for a potential IPO, a decision that may impact its user base and market competitiveness.
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- Decentralization Strategy: An OpenAI spokesperson stated that the company is decentralizing OpenAI for Science to better align its work with teams developing leading model capabilities, products, and infrastructure, a strategic shift that could impact the company's R&D direction.
- Closure of Sora Project: Peebles left shortly after the successful launch of Sora, which had topped the Apple App Store, but was shut down last month as OpenAI seeks to cut costs and reallocate computing resources ahead of a potential IPO, reflecting the company's need for resource consolidation.
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- Increasing Industry Pressure: As the AI industry gradually accepts per-token billing models, companies like OpenAI face similar transformation pressures, potentially leading their customers to reassess AI usage efficiency, which could affect future market performance and investor confidence.
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See More
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- Executive Departures: OpenAI's Chief Product Officer Kevin Weil and Sora's head Bill Peebles announced their exits on Friday, marking the latest leadership upheaval that could impact the company's strategic direction and project execution.
- Decentralization Strategy: An OpenAI spokesperson stated that the company is decentralizing OpenAI for Science to better align its work with teams developing leading model capabilities, products, and infrastructure, thereby enhancing R&D efficiency and market responsiveness.
- Medical Leave and Recovery: Prior to the departures, OpenAI's product and business chief Fidji Simo announced a medical leave due to a worsening neuroimmune condition, raising concerns about executive health that could affect investor confidence.
- Closure of Sora Project: Following its successful launch, the short-form video app Sora was shut down as OpenAI aims to cut costs and reallocate computing resources in preparation for a potential IPO, a decision that may impact its user base and market competitiveness.
See More
OpenAI Executives Depart Amid Leadership Shakeup
- Executive Departures: Bill Peebles, who led OpenAI's short-form video app Sora, and Kevin Weil, the VP of OpenAI for Science, announced their exits on Friday, following the medical leave of product chief Fidji Simo, highlighting instability at the company's leadership level.
- Decentralization Strategy: An OpenAI spokesperson stated that the company is decentralizing OpenAI for Science to better align its work with teams developing leading model capabilities, products, and infrastructure, a strategic shift that could impact the company's R&D direction.
- Closure of Sora Project: Peebles left shortly after the successful launch of Sora, which had topped the Apple App Store, but was shut down last month as OpenAI seeks to cut costs and reallocate computing resources ahead of a potential IPO, reflecting the company's need for resource consolidation.
- Frequent Leadership Changes: In addition to Peebles and Weil, marketing chief Kate Rouch also stepped down to focus on cancer recovery, while operating chief Brad Lightcap transitioned to focus on
See More
Allbirds Transitions to AI Company Amid Stock Volatility
- Stock Volatility: Allbirds (BIRD) stock experienced extreme fluctuations following its announcement of a pivot to an AI company, soaring nearly 600% on Wednesday before plummeting 35% on Thursday, ultimately closing the week with a 350% gain, indicating high market interest and uncertainty regarding its new strategy.
- Significant Market Cap Changes: The company's market cap surged from $21.7 million to a peak of $159 million within a week, reflecting strong investor reactions to its transformation, although it settled at $94 million by Friday's close, still demonstrating expectations for its future potential.
- Funding Plans and Strategic Goals: Allbirds plans to rebrand as NewBird AI and aims to raise $50 million by the second quarter of 2026 to support the acquisition of high-performance AI computing hardware and long-term leasing services, targeting a gap in the market for AI computing resources.
- Market Demand and Competitive Landscape: The rapid growth in AI development has created unprecedented demand for high-performance computing, and Allbirds' pivot is strategically positioned to address this trend, despite facing fierce competition from companies like Nvidia and Meta, highlighting its strategic positioning in an emerging market.
See More
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Market Performance: The U.S. stock market closed on Friday with the Dow rising 1.79%, the S&P 500 up 1.2%, and the Nasdaq increasing by 1.52%, marking the 13th consecutive trading day of gains for the Nasdaq.
Record Streak: The Nasdaq's performance set a new record for the longest rising streak since January 1992.
Key Stocks Movement: Notable stock movements included Apple rising by 2.5%, Tesla increasing by 3%, and Meta Platforms up by 1.7%.
Netflix Decline: In contrast, Netflix experienced a significant drop, falling nearly 10%.
See More
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- Layoff Announcement: Meta is reportedly planning its first wave of layoffs on May 20, targeting approximately 8,000 employees, which constitutes 10% of its global workforce, marking this as an initial round with further cuts anticipated in the second half of the year.
- Significant Historical Cuts: This round of layoffs will be the largest since late 2022 and early 2023 when Meta eliminated 21,000 jobs, reflecting the company's adjustments in what it termed a 'year of efficiency' after post-COVID growth assumptions proved unsustainable.
- Impact of AI Investments: While the exact reasons for the layoffs remain unconfirmed, Meta's heavy investment in AI technology mirrors trends seen in other tech firms, suggesting that the rise of AI may reduce the need for staff, thereby influencing this layoff decision.
- Modest Stock Boost: Despite the concerns surrounding the layoffs, the news provided a modest boost to Meta's stock price into the close, indicating a cautious optimism among investors regarding the company's future adjustments.
See More
Anthropic Adjusts Pricing to Address AI Demand Uncertainty
- Distorted Demand Signals: While AI demand appears explosive, CEO Dario Amodei of Anthropic highlights that data centers take 1-2 years to build, leading companies to commit billions without verified demand, risking customer loss or delayed revenues, which could impact financial stability.
- Pricing Model Shift: Anthropic is transitioning from flat-rate enterprise pricing to per-token billing, ensuring that revenue reflects actual usage, a strategy aimed at addressing the economic imbalance caused by changes in agentic AI usage patterns, thereby enhancing the company's competitive position in the market.
- Increasing Industry Pressure: As the AI industry gradually accepts per-token billing models, companies like OpenAI face similar transformation pressures, potentially leading their customers to reassess AI usage efficiency, which could affect future market performance and investor confidence.
- Investor Focus: Anthropic and OpenAI are expected to pursue IPOs this year, with investors likely to first scrutinize the authenticity of demand; Anthropic's per-token billing provides clearer data on customer value, while OpenAI may face greater challenges in proving the authenticity of its growth figures.
See More
