Meta Platforms (NASDAQ: META) has announced a plan for capital expenditures between $115 billion and $135 billion in 2026, a significant portion of which will be allocated to artificial intelligence (AI). This forecast marks a strong indication from a leading hyperscaler that the ongoing AI boom is set to accelerate further. The announcement follows a robust earnings report in which the social media giant surpassed analysts’ expectations on both revenue and earnings.
For the first quarter, Meta reported revenue of $59.9 billion, a 24% increase compared to the previous year, while full-year revenue climbed to over $200 billion, reflecting a 22% year-over-year growth. Despite recent concerns surrounding a potential AI bubble that had affected stock prices at the end of last year, Meta’s outlook suggests that the company sees continued growth in this sector.
The core of Meta’s capex forecast illustrates a striking 73% increase from the previous year’s expenditures, up from $72.2 billion in 2025, and a more than doubling from $39.2 billion in 2024. This tripling of infrastructure spending over two years underscores the company’s commitment to bolstering its AI capabilities alongside its existing suite of applications and advertising services.
Meta’s capital infusion is poised to benefit various companies in the AI ecosystem, particularly those involved in data center operations. One firm that stands out is CoreWeave (NASDAQ: CRWV), which has established itself as a key player by collaborating with AI industry leaders like Nvidia, OpenAI, and Meta itself. CoreWeave specializes in constructing data centers equipped with GPUs and other components essential for AI operations, renting out processing power to hyperscalers and startups engaged in complex AI model deployments.
In September, Meta and CoreWeave entered into a substantial $14 billion agreement, ensuring that Meta would procure cloud computing capacity from CoreWeave through 2031. While Meta did not specify which companies would receive capital expenditures during its recent earnings call, it is reasonable to infer that some portion of the announced capex will flow to CoreWeave, highlighting the interconnected nature of these firms in the expanding AI landscape.
Since going public less than a year ago, CoreWeave has experienced considerable volatility. Originally listing at $40, the stock saw its price surge above $180 in June, before plummeting to under $70 last December. However, it has since rebounded. The stock’s performance has mirrored broader market sentiment surrounding AI, operating as a barometer for investor enthusiasm. CoreWeave is currently engaged in significant capital outlay for GPUs, primarily funded through debt, which will help it supply the computing power required for its client base, contributing to its revenue growth projected to be in triple digits through 2026.
Despite Meta’s announcement, CoreWeave’s stock did not see immediate movement. Still, with the potential for increased demand as the AI sector evolves, the company stands to be among the primary beneficiaries should the arms race for AI capabilities continue to escalate.
The implications of Meta’s capital expenditures extend beyond its own balance sheet. As the market awaits similar announcements from industry peers like Microsoft, Alphabet, and Amazon, there is anticipation that these firms may reveal comparable spending levels, which could further bolster CoreWeave’s prospects.
For investors contemplating CoreWeave, it is essential to consider that it did not make the latest list of recommended stocks by the Motley Fool Stock Advisor, which identifies what it believes to be the ten best investment opportunities currently available. Historical performance of the listed stocks, such as Netflix and Nvidia, underscores the potential for outsized returns. However, CoreWeave’s high-growth, high-risk profile indicates it may not appeal to all investors.
As the AI narrative continues to unfold, Meta’s substantial spending forecast serves as both a bellwether for the sector’s health and a signal for investors eyeing opportunities in AI infrastructure and its supporting ecosystem. With mounting excitement surrounding developments in the AI landscape, the coming months may reveal further insights into how these investments will reshape the sector.
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