From Nasdaq: 2024-08-03 07:35:00

Meta Platforms (NASDAQ: META) dominates social media with apps like Facebook, Instagram, and WhatsApp. Advertising on these platforms drives Meta’s revenue growth, with billions of users daily. CEO Mark Zuckerberg is focused on expanding into AI, with Nvidia (NASDAQ: NVDA) set to benefit from Meta’s increasing use of AI technology, including large language models (LLM).

Meta’s AI program includes Llama, an AI tool for users and developers. Meta’s focus on AI means a significant investment in GPUs, with Nvidia playing a crucial role. Meta plans to use Nvidia’s H100 GPUs and future Blackwell chips for AI tasks, showing a long-term partnership potential. As Meta’s AI needs grow, Nvidia stands to gain billions in revenue.

In Meta’s recent earnings report, CEO Zuckerberg mentioned Llama 4, the company’s latest AI model, requiring significantly more compute power than its predecessor. With Nvidia’s GPUs being critical to this technology, the partnership is expected to boost Nvidia’s revenue. This collaboration highlights Nvidia’s position as a leader in AI technology, making it a promising investment choice for shareholders.

Investors should consider Nvidia as a compelling investment opportunity, given the company’s leadership in GPU technology and strong demand from industry giants like Meta. Meta’s focus on AI is expected to drive significant revenue for Nvidia, ensuring steady growth and potential gains for investors. The strategic partnership with Meta reinforces Nvidia’s position as a key player in the AI technology sector.



Read more at Nasdaq: Prediction: This Big Bet by Meta Platforms Will Equal Billions for Nvidia