Meta CEO, Mark Zuckerberg, has just shared good news for investors from Nvidia, Broadcom and Arista Networks

Large technological companies strongly spend to stay in the foreground of artificial intelligence. The budgets for the construction of AI data centers filled with GPU and network switches jumped higher in 2024. And a recent update Meta-platforms (Meta 0.32%)) CEO Mark Zuckerberg says 2025 could see an even more important leap in expenses.

Zuckerberg said in an article on Facebook that Meta will spend between $ 60 billion and $ 65 billion in capital spending in 2025. This increased from $ 40 billion to 2024, a 60% leap in the middle of each forecast. Despite the previous comments of Zuckerberg referring to a sharp increase in expenses for 2025, analysts expected Meta’s capital investments to occur around 51 billion dollars this year.

Zuckerberg’s comments suggest that Big Tech is not even about to be finished with the expenses on the development of AI while the arms race continues in 2025. This is excellent news for some meta- Important suppliers: Nvidia (NVDA -3.67%)),, Broadcom (Avgo 2.60%))And Arista networks (Anet 1.20%)).

Image source: Getty Images.

The constituent elements of a data center

At the heart of the training centers focused on the training and inference of important languages ​​of languages ​​are GPUs. In Zuckerberg’s position, he said Meta will have 1.3 million GPUs by the end of the year. This is an increase compared to the 600,000 estimates that the meta given for the end of 2024.

Nvidia is GPU’s largest supplier in Meta, and he is likely to stay in 2025. The latest Nvidia chips according to his promise of Blackwell architecture 30 times the performance of her previous generation, with 25 times less cost and energy consumption. No competitor is currently getting closer to this level of performance outside the box such as the fleas of Nvidia. And in a market where large technological companies run to stay in advance, paying for Nvidia chips is the fastest way to stay ahead.

But Nvidia is not the only company on which Meta relies for the AI ​​chips. Meta designs its own silicon, working closely with Broadcom, to manage specific tasks linked to the development and deployment of Meta AI. For example, the classification and recommendation models that feed Facebook and Instagram, stories, coils, videos and more are built on the AI ​​AI of Meta chips. These personalized chips are faster and more efficient than GPUs for general use.

Meta works to extend the scope of her own chips to include a generative AI, and she will probably continue to take measures towards this objective in 2025. This is excellent news for Broadcom, which is a key technology supplier for Meta in this business.

All of these GPU and AI accelerators need an effective way to communicate with each other and ensure that the data quickly gets one place to another. This requires Ethernet switches. Ethernet switches are like traffic controllers for data centers. They transport the data from one server to another and ensure that there is no congestion on the network slowing everything.

Meta is associated with Arista Networks to create hardware and software solutions for its data centers. With plans to open a massive data center full of GPU in 2025, Arista will also see a strong advance in meta commands.

Inside these Arista Ethernet switches are more Broadcom chips. Broadcom makes logical chips that allow equipment to effectively buy data. Thus, the company plays both a support role for the chips of Nvidia while offering a product competing to a certain extent.

Are these actions a purchase?

Zuckerberg’s announcement is certainly excellent news for continuous IA infrastructure demand, such as that provided by Nvidia, Broadcom and Arista Networks. The three should see strong growth in revenues in 2025, which should result in a good bump of profits for investors.

But just because a company is ready to grow in 2025. The evaluation is still important. These three actions have seen their prices climb considerably as the excitement around the increased demand for their products has permeated the market. As a result, their stocks have become a price for perfection.

We have seen the impact of this prize recently following the realization of what LLM Deepsek of High Flyer worked and potential long -term implications. While the NVIDIA, Broadcom and Arista networks could still show great financial results in 2025, Deepseek’s innovations question the duration of the Big Tech maintain its expenses in equipment before focusing on the more effective meeting of its software.

The three actions include considerable risks and uncertainty. NVIDIA’s actions seem attractive according to the event estimates for financial year 2026 (ending next January), but the potential for lowering market share and pressure on pricing are challenges to challenges long term.

Broadcom has many advantages as a personalized AI accelerator designer for META and other large technological companies, as well as the creation of essential chips for network switches. His business is more diversified than that of Nvidia, with slower segments outside the chips linked to AI. However, it is negotiated for a higher term profit than Nvidia, based on the estimates of Wall Street.

Arista Networks is experiencing great growth in income, but its actions are now negotiating more than 40 times the long -term profits when writing this article. And this is after the impact of Deepseek news. Despite the high demand for its equipment, the company does not develop quickly enough to justify its current course.

Although Zuckerberg’s comments were able to give confidence to the 2025 results for the three companies, long -term issues and actions assessments make the three risky actions to have. It may be useful to add exposure to the expenses of the AI ​​data center through these actions, as long as investors remain attentive to the risks that each poses and the constant changes that occur in the development of AI.