Meta Platforms (META) has recently achieved a remarkable feat in the stock market, securing gains for 19 consecutive trading days. This impressive rally, the longest winning streak among current Nasdaq 100 (^NDX) constituents since 1990, underscores the market’s positive sentiment towards the tech giant. A key driver behind this surge is Meta’s successful integration of Artificial Intelligence across its extensive platform portfolio. Concurrently, Arm Holdings (ARM), also listed on Nasdaq, is making strategic moves in hardware, venturing into the development of its own semiconductor chips, with Meta reportedly becoming its first customer. This parallel development highlights two distinct yet interconnected facets of the technology landscape.
According to Mandeep Singh, an analyst at Bloomberg Intelligence, Meta’s dominance in internet engagement, primarily through its widely used platforms such as Facebook, Instagram, and WhatsApp – each boasting over a billion daily active users – positions it uniquely in the digital advertising space. Singh emphasizes that Meta’s effective application of AI across its applications is a prime example of successful GenAI implementation. The company has adeptly utilized AI to enhance ad targeting and creative generation, directly translating its significant investments in AI infrastructure into improved ad pricing and increased user engagement. This contrasts with Arm’s strategic pivot towards chip manufacturing, a move that places it in a competitive landscape against established semiconductor firms.
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