Meta spending slams Facebook stock, but here are the chip stocks that are benefiting

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Meta's woes are tanking its stock, but these chip stocks are benefiting from it

Data-center stocks buoyed an otherwise down chip sector Thursday as shares of Facebook parent Meta Platforms Inc. cratered on torn-in-half profits and a hike in capital spending to fuel Mark Zuckerberg’s metaverse ambitions, prompting one analyst to ask if server chips can only go up now.

Meta META, -24.43% noted that an “increase in AI capacity is driving substantially all of our capital expenditure growth in 2023.” Opinion: Facebook and Google grew into tech titans by ignoring Wall Street. Now it could lead to their downfall From the perspective of the chip industry — which has gone from a two-year global chip shortage to a sudden glut in a matter of months as PC and consumer-electronics demand has dropped sharply, causing chip fabricators to pump the brakes on investments in new capacity — Lipacis questioned whether the glut will ever reach data-center sales, as many have feared.

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