By Chris Combs
Chief investment strategist
Silicon Valley Capital Partners.
1. “Meta Spending to Soar on AI, Massive Data Center”
Wall Street Journal
- Meta plans to increase its capital expenditures in 2025 to $60–$65 billion, up markedly (~70%) over 2024.
- The increase is being driven largely by investments in new data centers and AI infrastructure.
- In 2024, Meta broke ground on six new data centers; in 2025 it aims to bring ~1 gigawatt of computing power online and build a major facility in Louisiana.
- The article frames this as part of a broader surge in tech companies betting heavily on compute infrastructure to underpin AI ambitions.
Takeaway: Meta’s scale of planned CapEx shows how AI is pushing companies to invest heavily in fixed infrastructure, not just software or R&D.
2. “Corporate America Forging Ahead With Capex Plans Buoys Stocks”
Bloomberg
- Despite macro uncertainties (such as trade policy shifts), many U.S. companies are holding firm on previously announced capital spending plans.
- About 71% of Russell 3000 companies that gave CapEx guidance continued to affirm their outlooks even amid tariff volatility.
- The article suggests this resilience in capital spending is a positive signal for the durability of corporate investment and, by extension, for equity markets.
Takeaway: At a broad, economy-wide level, firms are not backing down from investment plans — a sign of confidence (or necessity) in CapEx.
3. “Traders Fixated on What Companies Spend More Than Earn”
Bloomberg
- Investors increasingly watch corporate CapEx as a forward-looking indicator: when firms spend heavily, it may presage growth trends (or overreach).
- In recent quarters, the gap between investment (spending) and earnings has drawn scrutiny: are firms overextending?
Takeaway: CapEx is becoming not just an operational line item but a market signal — too much debt-financed CapEx can trigger caution.