Meta's AI Push Could Add $100 Per Share While Tesla Faces EV Headwinds
Recent trends in the share market have highlighted the contrasting performance of two tech giants, Meta Platforms, Inc. (META) and Tesla Inc. (TSLA). META has been on a remarkable 16-day win streak, attributed to its aggressive AI initiatives. On the other hand, TSLA is facing challenges in the EV sector. Despite this, Wedbush analyst Dan Ives remains optimistic about Elon Musk's long-term robotics and AI strategy.
Meta's AI Monetization Strategy
During a recent CNBC segment, Ives emphasized Meta's AI-driven monetization strategy, stating that innovations in AI could potentially add an incremental $100 per share for the company as it intensifies its AI efforts. While Tesla has encountered obstacles in the EV sector, Ives believes that its future success lies beyond just cars, focusing on autonomous technologies and robotics.
Stock Performance
In the last 16 days, both Meta and Tesla have seen fluctuations in their stock performance. This dynamic landscape reflects the evolving market sentiment towards these tech giants.
Investments in AI Infrastructure
Major tech companies such as Amazon.com Inc. (AMZN), Microsoft Corp. (MSFT), Meta, and Alphabet Inc. (GOOG) are collectively investing a record $320 billion in AI infrastructure this year, marking a substantial increase from previous years. Amazon, Microsoft, Alphabet, and Meta are leading the charge with significant investment figures allocated towards AI initiatives.
Market Response
Wall Street has expressed some skepticism towards the substantial spending by Big Tech on AI infrastructure. The emergence of China's DeepSeek, a cost-effective, high-performance AI model, has also raised concerns among investors about the potential impact on Big Tech's investments.
Meta's stock saw a slight increase in after-hours trading, while Tesla experienced a dip following a drop in its share price. The market responses reflect the ongoing developments and challenges faced by these companies in the tech sector.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Benzinga does not provide investment advice. All rights reserved.
