Meta Stock Rising as Facebook Parent Spends Big on AI—Key Technical Levels to Monitor

Meta Platforms, Inc.

Facebook parent Meta Platforms (META) is likely to command investors’ attention Friday after founder and CEO Mark Zuckerberg said the tech giant is spending billions on Nvidia’s (NVDA) artificial intelligence chips to bolster its AI infrastructure. In a video posted on Instagram Reels, Zuckerberg said the company will increase its AI computing power by integrating more of Nvidia’s H100 graphics processing units (GPUs) into its infrastructure by the end of 2024. Although the Meta chief didn’t specify what the company had already outlaid on AI chips, Raymond James analysts indicated a figure close to $9 billion, given Nvidia sells the H100 for $25,000 to $30,000 and fetches as much as $40,0000 on eBay (EBAY). The company told investors at its third quarter earnings call that AI computing infrastructure will represent a significant portion of its 2024 total expenditure, expected to be between $94 billion to $99 billion.

After breaking above the prominent November swing high in mid-December, the META share price retested the initial breakout point early this year before continuing to trend higher. Given the stock has successfully held this important support level and trades just below its all-time high (ATH) of around $385, keep an eye on trading volumes to gauge the strength of the current trend. If the stock price continues to rise, but share turnover falls, it could indicate waning buyer momentum.

Meta shares were up 0.9% at $379.60 in premarket trading Friday about 30 minutes before the opening bell.

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