Zuckerberg: Memory Pricing Drives Meta's $10B Capex Hike
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- Meta Platforms raised its 2026 capex forecast from $115B–$135B to $125B–$145B, with CEO Mark Zuckerberg saying most of the increase stems from higher component costs, particularly memory pricing.
- Google Cloud grew 63%, Microsoft Azure 39%, and Amazon Web Services 28% in Q1, showing AI-driven cloud spending is accelerating across every major hyperscaler.
- Meta reported Q1 revenue up 33%—fueled by a 19% jump in ad impressions and 12% higher average price per ad—yet the stock still fell on skepticism around the higher capex guidance.
- Nvidia and Micron are positioned as the biggest winners from rising chip prices and increased data center spending, with higher prices translating directly into expanding gross margins.
- Alphabet told investors it plans to spend significantly more on capex in 2027, suggesting the AI investment cycle still has multi-year runway beyond the current spending year.
- Nvidia trades at a P/E of 43 against 73% revenue growth, and Micron at 24x earnings with even faster growth—both looking inexpensive relative to their trajectories, according to the analysis.
Why it matters: Zuckerberg's explicit attribution of the capex increase to memory pricing—not just volume needs—is a direct margin signal for chip suppliers: Micron and Nvidia can raise prices without sacrificing demand. With all four hyperscalers simultaneously posting accelerating cloud growth (28%–63%) and Alphabet flagging higher 2027 capex, the AI infrastructure cycle shows no signs of peaking, giving semiconductor investors a concrete catalyst beyond the hype.
