Shares of Meta jumped 12% and Microsoft rose 5% on Thursday after both companies reported earnings that exceeded expectations on revenue and profit.
Microsoft’s stock surge pushed its market value past the $4 trillion mark, making it the second company after Nvidia to reach that milestone.
Both tech giants have been pouring resources into artificial intelligence infrastructure and signaled that they plan to keep spending heavily. Meta raised its full-year capital expenditure forecast to a range of $66 billion to $72 billion, up from a prior low-end estimate of $64 billion. Microsoft projected more than $30 billion in capital expenditures and finance lease acquisitions for its fiscal first quarter, far above analyst expectations of $24.23 billion.
Citi analysts noted that the expanded spending by Meta and Microsoft could provide a significant boost to chipmakers. Microsoft accounts for about 8% of Advanced Micro Devices’ revenue, while Meta represents roughly 2% of Broadcom’s sales.
