Meta Doubles Down on AI with $135 Billion Capital Spending Plan for 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Benzinga
- Capital Expenditure Plan: Meta anticipates capital expenditures between $115 billion and $135 billion for 2026, primarily aimed at supporting the development of 'Meta Superintelligence Labs,' which will significantly enhance the company's AI infrastructure capabilities.
- Superintelligence Vision: Zuckerberg emphasizes the vision for personal superintelligence, stating that the company will continue to invest heavily in infrastructure to train leading AI models, which will accelerate business growth and shape future operations.
- Intensifying Industry Competition: While Meta leads in AI capital expenditures, BofA Securities analyst projects that the industry's capital spending will reach $528 billion by 2026 and could climb to $1.2 trillion by 2030, indicating increasing competition within the sector.
- Strong Financial Performance: Meta reported $59.89 billion in revenue for Q4, a 24% year-over-year increase that exceeded market expectations, with earnings per share at $8.88, reflecting the company's robust financial performance amid its AI investment strategy.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for META is 824.71 USD with a low forecast of 655.15 USD and a high forecast of 1117 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 672.970
Low
655.15
Averages
824.71
High
1117
Current: 672.970
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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