| | | Meta's AI development efforts could benefit Nvidia, AMD, others: Wells Fargo
Feb. 02, 2024 9:45 AM ET
By: Ravikash, SA News Editor
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Meta Platforms' (NASDAQ: META) fourth-quarter revenue beat and solid outlook due in part to artificial intelligence could result in Nvidia ( NVDA) and others amid increased spending, Wells Fargo said.
While Meta did not provide a capital spending plan beyond 2024, the company noted it expects its long-term AI development efforts will need growing infrastructure investments beyond 2024, the analysts said.
Meta added that AI training and the operations of future models will be even more compute-intensive; however, the degree is not yet certain, the analysts added.
In addition, Meta noted that leading edge large language models have been trained on roughly ten times the amount of compute power each year.
Meta is focused on heavy investments to build the most advanced AI clusters — using novel data center and the evolution of internal silicon efforts.
The analysts highlighted positive impact of Meta's AI efforts on certain companies.
Nvidia ( NVDA) is the clear beneficiary and the firm's analysts are increasingly confident in solid January quarter upside.
Advanced Micro Devices ( AMD): Meta is already deploying AMD's MI300X GPUs.
Arista Networks ( ANET): Meta is Arista's largest customer at 26% of 2022 revenue. The company has been a key beneficiary of Meta's adoption of Ethernet for back-end AI fabrics.
Pure Storage ( PSTG): The analysts mulled whether Pure Storage is well positioned as Meta's primary back-end all-Flash storage provider in AI Research SuperCluster, or RSC, deploys. |
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