Key Insights
- Meta’s market cap reclaimed $1 trillion level on Wednesday, hitting milestone for second time ever.
- Comes as stock surged 2%+ to record peak amid bullishness around AI investments.
- Meta spending billions on high-performance computing for AI after year of cost cuts.
CALIFORNIA – Meta Platforms Inc’s (META.O) market valuation went back above $1 trillion on Wednesday, hitting this milestone for the second time as its stock rose over 2% to an intraday record high.
Shares in the Facebook parent touched $396 each, taking its market cap to $1.02 trillion shortly before paring gains. The company last hit a $1 trillion value in 2021.
Meta’s market cap has doubled since last year’s lows thanks to aggressive cost measures. But shareholders now seem bullish on its ambitious AI investments after CEO Mark Zuckerberg called 2023 a “year of efficiency”.
Last week, Zuckerberg said Meta will obtain 350,000 advanced AI chips from Nvidia Corp (NVDA.O) as it spends billions to support high-performance computing needs.
The disclosures lifted hopes that Meta can compete against Microsoft Corp (MSFT.O) and Alphabet Inc’s (GOOGL.O) Google in the race to develop cutting-edge AI applications.
Microsoft also touched the $3 trillion market cap mark on Wednesday, showing the resilience of U.S. technology titans despite economic gloom.
All eyes are now on Meta’s February 1 earnings for clues about its AI progress. The company last exceeded $1 trillion in value in 2021 before growth concerns dragged shares down nearly 60% the next year.