Meta CEO Mark Zuckerberg delivers major boost for Nvidia investors

Mark Zuckerberg has delivered an unexpected lift for Nvidia as Meta doubles down on aggressive investment in AI computing power, even as the company’s shares have fallen sharply since its third-quarter results.

The sell-off was largely driven by concerns over rising expenses, but those same costs are now signaling long-term opportunity for suppliers of advanced chips, especially Nvidia.

Over the last several years, Meta has shifted its focus away from the metaverse hype cycle and toward large-scale AI systems requiring massive computing resources.

This transition has led to a rapid rise in spending across research, development, and infrastructure.

While investors once balked at soaring costs, analysts now see Meta’s renewed AI strategy as a key driver of demand for Nvidia’s highest-end processors, which power training for large models and recommendation engines.

Meta’s heavy investment cycle initially weighed on free cash flow and triggered a dramatic share pullback in 2022.

But the company’s recent commitment to building out AI data centres, and its admission that spending will continue rising, has strengthened confidence among Nvidia shareholders who depend on hyperscalers to maintain chip orders.