{"id":532077,"date":"2026-07-04T02:16:08","date_gmt":"2026-07-04T02:16:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/532077\/"},"modified":"2026-07-04T02:16:08","modified_gmt":"2026-07-04T02:16:08","slug":"meta-platforms-will-spend-135-billion-on-ai-in-2026-there-might-only-be-1-reason-why","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/532077\/","title":{"rendered":"Meta Platforms Will Spend $135 Billion on AI in 2026. There Might Only Be 1 Reason Why."},"content":{"rendered":"\n

The market is focused these days on the immense amount of capital flooding the artificial intelligence (AI) build-out. The hyperscalers are getting all the attention as they embark on an extraordinary investment cycle<\/a>. <\/p>\n

Meta Platforms (NASDAQ: META) is one such business. The dominant social media platform, which has historically posted huge profits and free cash flow, plans to spend $125 billion to $145 billion on capital expenditures (capex) in 2026, mostly for AI infrastructure. That upper bound is about double the $72 billion figure from last year. <\/p>\n

Missed Nvidia in 2009? This Rare Signal Is Flashing Again.\u00a0In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia.\u00a0For the first time in years, that same “Total Conviction” signal is flashing for a company 1\/100th the size of Nvidia.\u00a0Continue \u00bb<\/a> <\/p>\n

Investors are probably wondering why Meta is transitioning from a capital-light business to a capital-intensive one. There might only be one reason. <\/p>\n

\"Meta<\/a> Image source: The Motley Fool. It’s all about Meta’s advertising <\/p>\n

On the Q1 2025 earnings call, Meta founder and CEO Mark Zuckerberg<\/a> said the company has five major opportunities related to the AI revolution. The list includes better recommendations and content, business messaging, the Meta AI assistant, and AI devices. But perhaps the most important priority is leveraging AI to improve advertising capabilities. <\/p>\n

“Our goal is to make it so that any business can basically tell us what objective they’re trying to achieve — like selling something or getting a new customer — and how much they’re willing to pay for each result, and then we just do the rest,” Zuckerberg mentioned on the call. <\/p>\n

He continued by saying that if Meta is successful in this regard, then “the increased productivity from AI will make advertising a meaningfully larger share of global GDP than it is today.” <\/p>\n

Connect the dots, and it becomes clear that Meta’s ultimate goal is to keep growing its ad revenue at a rapid clip over the long haul. Ad sales totaled $55 billion in the first quarter (ended March 31), representing 98% of the company’s entire top line. Advertising is what Meta is all about. That’s not going to change. <\/p>\n

The market looks concerned <\/p>\n

During Q1, Meta reported a 19% year-over-year increase in ad impressions, while the average price per ad rose 12%. These two variables helped lift the company’s revenue by 33% compared to the first quarter of 2025. That was the fastest growth rate since Q3 2021. <\/p>\n

To justify the $135 billion in capex earmarked for 2026, investors will become more demanding about Meta’s financial performance. In fact, they probably already are, as the “Magnificent Seven” stock is down 15% in 2026 (as of June 29) and 29% off its record. <\/p>\n

Time will tell whether this AI capex boom will lead to satisfactory returns for one of the world’s elite businesses. <\/p>\n

Should you buy stock in Meta Platforms right now? <\/p>\n

Before you buy stock in\u00a0Meta Platforms, consider this: <\/p>\n

The Motley Fool\u00a0Stock Advisor\u00a0analyst team just identified what they believe are the\u00a010 best stocks<\/a>\u00a0for investors to buy now\u2026 and\u00a0Meta Platforms\u00a0wasn’t one of them.\u00a0The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. <\/p>\n

Consider when\u00a0Netflix\u00a0made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $418,761!*\u00a0Or\u00a0when\u00a0Nvidia\u00a0made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $1,195,804!* <\/p>\n

That performance is why people listen. With a track record of\u00a0beating the S&P 500 by 4x,\u00a0Stock Advisor\u00a0offers a distinct advantage. Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built for the long haul. <\/p>\n

See the 10 stocks \u00bb<\/a> <\/p>\n

*Stock Advisor returns as of July 3, 2026. <\/p>\n

Neil Patel<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy<\/a>. <\/p>\n

Meta Platforms Will Spend $135 Billion on AI in 2026. There Might Only Be 1 Reason Why.<\/a> was originally published by The Motley Fool <\/p>\n","protected":false},"excerpt":{"rendered":"The market is focused these days on the immense amount of capital flooding the artificial intelligence (AI) build-out.…\n","protected":false},"author":2,"featured_media":532078,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,10841,218,219,44530,61,60,2393,80,129292],"class_list":["post-532077","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-ai-revolution","tag-artificial-intelligence","tag-artificialintelligence","tag-capital-expenditures","tag-ie","tag-ireland","tag-meta-platforms","tag-technology","tag-the-motley-fool"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/532077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=532077"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/532077\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/532078"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=532077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=532077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=532077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}