The meta artificial intelligence plan breaks the new frontier in 2025.
Major high -tech companies spend a lot of money to stay at the forefront of artificial intelligence. The budget for building AI data centers filled with GPU and network switches jumped high in 2024. (Meta 0.32 %) CEO’s Mark Zuckerberg says that 2025 can jump even more for spending.
Zuckerberg stated on Facebook that Meta would spend $ 600 billion to $ 65 billion in 2025. This increased from $ 38 billion to $ 40 billion in 2024, increasing 60 % of jumps at the middle of each forecast. Despite the previous comments from Zuckerberg suggesting a significant increase in expenditures in 2025, analysts anticipated meta’s capital investment to about $ 51 billion this year.
Zuckerberg’s comment suggests that Big Tech is not even approaching AI development. AI development continues until 2025. This is a great news for some important metas plyers: NVIDIA (NVDA -3.67 %)Broadcom (AVGO 2.60 %)And Alista Network (Anet 1.20 %)。
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Data center components
The core and reasoning of the data center focusing on the training of large language models is the GPU. He stated that Zuckerberg posted 1.3 million GPUs by the end of the year. This is an increase from the 600,000 estimated value given by the meta at the end of 2024.
NVIDIA is the biggest supplier of GPU meta, and it may stay that way in 2025. The latest chips of NVIDIA based on Blackwell Architecture promise 30 times the performance of the previous generation and promise 25 times cost and energy consumption. Currently, competitors who are approaching that level of performance, like NVIDIA chips, are not out of the box. And in the market where major high -tech companies are competing for each other, paying the NVIDIA chips is the fastest way to go.
However, it is not only NVIDIA that Meta depends on AI chips. META designs its own silicon in order to handle specific tasks related to Meta’s AI development and deployment in closely linked with Broadcom. For example, Facebook and Instagram feeds, stories, reels, videos, etc. are built based on meta -specific AI accelerator chips. These custom construction chips are faster and more powerful than general -purpose GPUs.
Meta is working to expand the scope of its own chips, including generated AI, and may continue to take measures in 2025. This is a great news for Meta’s important technology provider, BROADCOM.
All of these GPUs and AI accelerators require an efficient way to communicate with each other and quickly get data from a certain place to another place. You need an Ethernet switch. The Ethernet switch is similar to a data center traffic controller. They route data from a server to another server, and make sure that there is no congestion on the network.
META will partner with Arista Networks to create hardware and software solutions for data centers. Alista will also take a strong step up on the meta with a plan to open a large -scale data center full of GPUs in 2025.
The inside of these Alistai Sanet switches is more broadcom chip. Broadcom creates a logic chip that allows hardware to route data efficiently. As a result, the company plays a support for NVIDIA chips and provides some competing products.
Do you buy these shares?
Zuckerberg’s announcement is a surprising news about continuous demand for AI infrastructure as provided by NVIDIA, Broadcom, and Arista Networks. All three should have achieved strong profits in 2025. This should lead to a great bump of investors’ profits.
However, it does not automatically purchase inventory just because the company is ready to grow in 2025. Evaluation is still important. All of these three shares have risen significantly due to the popularity of the increase in product demand. As a result, their stock prices were set for perfection.
Following the realization of HIGH-FLYER’s LLM Deepseek, and the potential long-term influence, it has recently been affected by its price. NVIDIA, Broadcom, and Arista Networks were still able to show great financial results in 2025, but DeepSeek’s innovation is Big Tech for hardware before focusing on making software more efficient. We ask the doubt about the period to maintain the expenditure.
All three stocks have considerable risk and uncertainty. The NVIDIA shares seem attractive based on the estimate of advance earnings in the 2026 fiscal year (end in January next year), but the decline in market share and the possibility of pressure on price setting power are long -term issues. 。
Broadcom has many advantages as a custom AI accelerator designer for meta and other major high -tech companies, and has created a chip that is essential for network switches. Its business is more diversified than NVIDIA, and there are some slower segments outside the AI -related chips. Nevertheless, based on the quotes of Wall Street, it is traded with a higher number of higher positive revenue than NVIDIA.
Arista Networks has grown greatly, but its shares are currently trading more than 40 times at the time of this writing. And it is after the influence of DeepSeek news. Despite the strong demand for hardware, the company is not growing fast enough to justify the current stock price.
Zuckerberg’s comments may have all of the three companies in the results of 2025, but long -term questions and stock evaluations can have the risk of all three shares. As long as the investors maintain their risks and keep in mind the constant changes that have occurred in AI development, it may be worthwhile that some people are exposed to the AI data center through these shares. No.
Randi Zuckerberg, a former director of market development, Facebook spokeswoman, and sister of Mark Zuckerberg, the CEO of Meta Platform, is a member of the Motley Fool’s Board of Directors. Adam Levy has a meta platform position. At Motley Fool, Arista Networks, Meta Platforms, and NVIDIA are recommended. Motley Fool recommends Broadcom. Motley fools have a disclosure policy.
