Home News Metastock Rises as Facebook Parent Spends Big on AI: Key Technical Levels to Monitor

Metastock Rises as Facebook Parent Spends Big on AI: Key Technical Levels to Monitor

by SuperiorInvest

Key takeaways

  • CEO Mark Zuckerberg said the tech giant is spending billions on Nvidia AI chips to bolster its AI infrastructure.
  • Zuckerberg said the company will increase its AI computing power by integrating more Nvidia H100 graphics processing units (GPUs) into its infrastructure by the end of 2024.
  • Meta share price continues to trend upwards but may face resistance near its all-time high around $385.

Metaplatformas, Inc.

Source: TradingView.com.

Facebook parent Meta Platforms (META) is likely to attract investor attention on Friday after founder and CEO Mark Zuckerberg said the tech giant is spending billions on Nvidia artificial intelligence chips. (NVDA) to strengthen its artificial intelligence infrastructure. In a video posted to Instagram Reels, Zuckerberg said the company will increase its AI computing power by integrating more Nvidia H100 graphics processing units (GPUs) into its infrastructure by the end of 2024. Although the Meta boss did not specify what The company had already invested in AI chips, Raymond James analysts indicated a figure close to $9 billion, taking into account that Nvidia sells the H100 for $25,000 to $30,000 and reaches a price of up to $40,0000 on eBay (EBAY). The company told investors on its third-quarter earnings call that AI computing infrastructure will represent a significant portion of its total spending in 2024, which is expected to be between $94 billion and $99 billion.

After surpassing the notable November high in mid-December, the META share price retested the initial breakout point earlier this year before continuing an uptrend. Since the stock has successfully held this important support level and is trading just below its all-time high (ATH) of around $385, keep an eye on the trading volumes to gauge the strength of the current trend. If the stock price continues to rise, but stock turnover falls, it could indicate a decline in buyer momentum.

Meta shares rose 0.9% to $379.60 in premarket trading on Friday, about 30 minutes before the opening bell rang.

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As of the date of writing this article, the author does not hold any of the above securities.

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