As of 3:07 p.m. EDT, Nvidia's stock price was up more than 7%.
In its third-quarter earnings release, Facebook said that it intends to allocate as much as $34 billion toward capital expenditures next year, which would represent a year-over-year increase of up to 79%. The lion's share of its investments will be geared toward bolstering the social media giant's data center network and other technology infrastructure.
Nvidia is as a leading producer of graphics processing units (GPUs) that power artificial intelligence (AI) applications in data centers and other computing markets. The company stands to be a major beneficiary of Facebook's ramped-up technology investments.
Nvidia finds itself in a position to profit from the battle being waged among the tech titans. With Apple's (AAPL 1.37%) privacy-focused initiatives weakening its ad-targeting abilities, Facebook has little choice but to seek new ways to reinforce its digital advertising business.
CEO Mark Zuckerberg is also adamant about the game-changing potential of the metaverse, an immersive, virtual reality-driven experience that he hopes to help build. Zuckerberg wants to position Facebook as a dominant player within the metaverse as a means to reduce its dependence on mobile platforms controlled by the likes of Apple and Alphabet's Google.
Facebook sees strengthening its AI capabilities as vital to both of these key aspects of its long-term competitive strategy. In turn, Nvidia's deep learning expertise and high-performance hardware and software could accelerate Facebook's progress toward achieving its AI-powered strategic objectives -- while fueling its own growth along the way.