Meta Platforms (META) is currently experiencing a remarkable period of growth in the Nasdaq 100, marked by a 19-day winning streak, a feat unparalleled since 1990. This surge, as Bloomberg Intelligence analyst Mandeep Singh points out, is significantly fueled by Meta’s successful integration of Artificial Intelligence (AI) across its vast ecosystem of platforms, including Facebook, Instagram, and WhatsApp, each boasting over a billion daily active users.
Singh, in a recent discussion, highlighted Meta as a “prime example” of effectively leveraging AI. The company has adeptly applied AI tools, particularly generative AI, to enhance ad creation and targeting. This strategic investment in AI infrastructure, evidenced by increased capital expenditure, is now yielding substantial returns through improved ad pricing and heightened user engagement across Meta’s platforms. This AI-driven success is a key factor in comparing Meta’s performance against other Nasdaq giants.
In a parallel development within the tech landscape and relevant to the Nasdaq sphere, Arm Holdings (ARM) is making significant strides by developing its own semiconductor chips. Notably, Meta has been identified as Arm’s first customer for these newly developed chips. This move by Arm comes at a time when hyperscalers like Alphabet (GOOG, GOOGL), Amazon (AMZN), and Microsoft (MSFT) are increasingly investing in in-house chip development.
Singh notes that Meta’s decision to develop its own chips is not surprising, especially considering the current geopolitical climate impacting chip supply chains and the industry’s heavy reliance on companies like Nvidia (NVDA). For companies listed on exchanges like Nasdaq, controlling key components like semiconductors is becoming increasingly strategic.
This context allows for an interesting “Nasdaq Arm Compare” scenario. While Meta thrives on AI-driven software and services, Arm is pushing forward in hardware innovation. Both companies, significant players in the Nasdaq, are navigating the evolving tech landscape by focusing on strategic technology developments – AI for Meta and advanced chip design for Arm. Their approaches, though different, reflect a broader trend among Nasdaq-listed tech companies to leverage cutting-edge technologies for growth and market leadership.
