Meta Platforms (META) has achieved a remarkable feat, with its stock price climbing for 19 consecutive trading days. This impressive rally marks the longest winning streak for any company currently listed on the Nasdaq 100 (^NDX) since 1990. Analysts are pointing to the company’s strategic implementation of Artificial Intelligence (AI) as a key driver behind this sustained growth.
Mandeep Singh, an analyst at Bloomberg Intelligence, highlighted Meta’s dominance in internet usage, noting the vast user base of platforms like Facebook, Instagram, and WhatsApp, each boasting over a billion daily active users. According to Singh, Meta’s success lies in its effective application of AI across its suite of apps. He emphasizes the company as a “prime example” of leveraging AI, particularly generative AI, to enhance ad creation and targeting. This strategic investment in AI infrastructure is translating directly into increased ad pricing and heightened user engagement on Meta’s platforms.
In a move reflecting broader industry trends, Meta is reportedly developing its own semiconductor chips, with Arm Holdings (ARM) as a potential partner. This decision aligns with similar initiatives from other hyperscalers like Alphabet (GOOG, GOOGL), Amazon (AMZN), and Microsoft (MSFT), who are also investing in proprietary chip development. Singh notes that Meta’s chip development is a logical step, especially given the complexities of the current chip market and reliance on key players like Nvidia (NVDA).
In conclusion, Meta’s record stock run underscores the significant impact of strategic AI implementation in the tech sector. As Meta continues to leverage AI and invest in its infrastructure, including chip development, the company is positioning itself for sustained growth and competitive advantage within the Nasdaq landscape, alongside industry giants like Amazon.
