Data-center suppliers get boost as Facebook parent Meta hikes capex for AI

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Shares of data-center equipment providers jumped in the extended session Wednesday after Facebook parent Meta Platforms Inc. META, -5.59% hiked its capital expenditure budget. Nvidia Corp. NVDA, -2.75% shares rallied 3.9% after hours, while Advanced Micro devices Inc. AMD, -2.83% shares rose 2.4%, Marvell Technology Inc. MRVL, -4.58% shares surged 3.8%, and Intel Corp. INTC, -0.73% shares rose 1%. In its earnings report, Meta said it expects 2022 capex of $32 billion to $33 billion, up from the prior range of $30 billion to $34 billion. For 2023, Meta expects capex in the range of $34 billion to $39 billion, “driven by our investments in data centers, servers, and network infrastructure,” and that an “increase in AI capacity is driving substantially all of our capital expenditure growth in 2023.”

This article was originally published by Marketwatch.com. Read the original article here.

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