Meta, Microsoft roar higher on strong earnings as AI spending booms

2025-08-01 01:30:07

Shares of Meta closed up 4% on Thursday, after the companies reported better-than-expected earnings that beat on top and bottom lines.

Both Meta and Microsoft have been investing heavily in artificial intelligence infrastructure in recent years, and the companies said they expect to continue to shell out billions in capital expenditures.

Meta said capital expenditures will range between $66 billion and $72 billion for the full year, raising the low end of the company’s previous estimate of between $64 billion and $72 billion. Microsoft sees over $30 billion in fiscal first quarter capital expenditures and assets acquired through finance leases, while analysts surveyed by Visible Alpha had expected $24.23 billion.

Analysts at Citi said the companies’ increased capital expenditures will likely be a boon for chipmakers. Microsoft makes up roughly 8% of Advanced Micro Devices
’ sales, while Meta makes up about 2% of Broadcom’s
sales, the analysts said.

“We believe AVGO and AMD will be the primary beneficiaries of Microsoft’s and Meta’s increased capex,” they wrote in a Thursday note.