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

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 31 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 97%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

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.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Oil ticks higher, shaking off industry data showing rise in U.S. crude stocksOil futures edge higher early Wednesday, with traders awaiting official data on U.S. crude inventories after industry figures show a large rise.
Source: MarketWatch - 🏆 3. / 97 Read more »