Meta Platforms (META +10.40%) kicked off Big Tech earnings season in fine form on Wednesday, topping estimates on the top and bottom line, and issuing better-than-expected guidance for the first quarter.
While doubts about the AI boom have lingered after concerns about a bubble sent AI stocks falling briefly toward the end of last year, from Meta's perspective, the boom is alive and well.
Revenue jumped 24% in the quarter to $59.9 billion and full-year revenue topped $200 billion, up 22% from the year before.
However, the biggest news out of the tech giant, at least for AI investors, was the company's spending forecast for this year.
Meta said that capital expenditures in 2026 would climb to $115 billion-$135 billion with year-over-year growth driven by investments in Meta Superintelligence Labs -- in other words, AI -- and its core business, meaning its family of apps and advertising.
That capex forecast represents 73% growth from the year before at the midpoint of the range, up from $72.2 billion in capex in 2025, which itself jumped 84% from $39.2 billion in 2024, meaning Meta's infrastructure spending is set to triple in just two years.
That's the clearest sign yet so far this year that the AI bonanza will only accelerate in 2026, and investors are clearly happy with the overall report, as the stock was trading up 8% after-hours.
Image source: Getty Images.
Who wins when Meta spends?
Meta's blockbuster capex forecast is meaningful for the social media giant, but it could be even bigger news for other corners of the AI sector. That money isn't going down a black hole, after all, and for the companies on the receiving end, like those running the data centers, it could make the difference between beating the market this year or slumping.
One of the biggest winners from Meta's massive capex ramp is likely to be CoreWeave (CRWV 6.12%), the fast-growing neocloud stock that has partnered closely with AI leaders like Nvidia, OpenAI, and Meta. CoreWeave builds out data centers and fills them with GPUs and other AI components, and then rents out computing power to hyperscalers, AI start-ups, and others looking to run demanding AI models.
Last September, CoreWeave and Meta announced a $14 billion agreement, whereby Meta has committed to pay that much to CoreWeave through 2031 for cloud computing capacity, and at least some of Meta's $115 billion-$135 billion in capex this year is likely to go to CoreWeave, though Meta didn't specify any companies on the earnings call.
NASDAQ: CRWV
Key Data Points
Is CoreWeave a buy?
CoreWeave has been public for less than a year, but it has taken investors on a wild ride.
The AI-focused cloud computing stock had a disappointing IPO, listing its stock at $40, below its target range. However, by June the share price had soared to north of $180 where it peaked before falling to below $70 last December, though it's since bounced back.
The stock has functioned like a high-beta indicator for sentiment around the broader AI sector, which makes sense as its business model is high-growth and high-risk and it has more to gain or lose than most AI stocks. The company itself is spending billions in capex on GPUs, most of it funded with debt, to buy the computing power it needs to then turn around and sell to its customers. Its revenue is growing by triple digits, and is expected to continue to do so in 2026.
CoreWeave stock didn't seem to move on Meta's capex announcement, but the company is poised to be one of the biggest winners this year if the AI arms race continues to heat up.
Meta's capex announcement portends well for AI spending in the rest of the hyperscaler sector. We'll learn shortly what peers like Microsoft, Alphabet, and Amazon expect to spend on capex this year, but don't be surprised if those reports bring more good news for CoreWeave.
