Meta AI Spending, AMD MI400 Chip, xAI $4.3B Funding

The AI and tech sectors are buzzing with activity. Oppenheimer has increased its price target for Meta Platforms to $775, citing an improved advertising environment, though noting TikTok's performance and Meta's AI development as potential risks. Meta's projected spending is substantial, estimated at $68 billion in 2025 and $85 billion in 2026. AMD is gaining recognition as a key player in AI, with BofA naming it the "next-best AI vendor" and setting a price target of $130. AMD recently unveiled its Instinct MI400 series AI chips, slated for release next year, with OpenAI's Sam Altman providing input on their development. AMD's partnerships include Meta, Oracle, Microsoft, xAI, OpenAI, and Saudi Arabia’s AI startup Humain. Meanwhile, Nebius Group NV NBIS, backed by Nvidia, is exhibiting a bullish golden cross signal, with its stock price up nearly 145% over the past year, signaling strong upward momentum as it aims to become a major AI infrastructure company. Elon Musk's xAI is seeking $4.3 billion in equity funding, in addition to $5 billion it is trying to borrow, to fuel its AI initiatives after having spent most of its initial funding. Finally, Micron anticipates significant growth in its fiscal Q3 2025 earnings, driven by robust demand for AI and High-Bandwidth Memory (HBM) products, with revenue projected to reach $8.885 billion.

Key Takeaways

  • Oppenheimer raised Meta's stock price target to $775, citing ad improvements but noting AI risks.
  • Meta's spending is projected to reach $68 billion in 2025 and $85 billion in 2026.
  • BofA named AMD the "next-best AI vendor" with a $130 price target.
  • AMD's new Instinct MI400 series AI chips are coming next year, with feedback from OpenAI's Sam Altman.
  • AMD is partnering with Meta, Oracle, Microsoft, xAI, OpenAI, and Saudi Arabia’s AI startup Humain.
  • Nvidia-backed Nebius Group shows a bullish golden cross signal, up nearly 145% in the last year.
  • Elon Musk's xAI is seeking $4.3 billion in equity funding.
  • Micron's Q3 2025 earnings are expected to jump due to AI and HBM demand.
  • Micron's revenue is projected to be $8.885 billion in fiscal Q3 2025.
  • Micron is investing in new facilities, including a DRAM chip plant in Idaho.

Oppenheimer predicts Meta Platforms stock could reach $775

Oppenheimer increased its Meta Platforms stock price target to $775, up from $665, with an "Outperform" rating. This is due to a better advertising environment. However, TikTok's performance and Meta's AI development are potential risks. Meta's spending is expected to be $68 billion in 2025 and $85 billion in 2026. Earnings per share are estimated to grow by 6% in 2025 and 11% in 2026.

AMD named next-best AI vendor by BofA with $130 target

BofA named Advanced Micro Devices (AMD) the "next-best AI vendor" and gave it a $130 price target. AMD shared details about its new AI chips, the Instinct MI400 series, which will come out next year. OpenAI's Sam Altman attended the event and gave feedback on AMD's plans. AMD is working with Meta, Oracle, Microsoft, xAI, OpenAI, and Saudi Arabia’s AI startup Humain. AMD develops semiconductors, processors, and GPUs for data centers, gaming, AI, and other uses.

Nvidia-backed Nebius stock shows bullish golden cross signal

Nebius Group NV NBIS, supported by Nvidia, is showing a bullish signal called a golden cross. This happens when the 50-day simple moving average (SMA) goes above the 200-day SMA, often leading to rallies. Nebius stock is trading above both its 50-day and 200-day SMAs. The Moving Average Convergence Divergence (MACD) also shows upward momentum. Nebius aims to become a major AI infrastructure company, with its stock up nearly 145% over the past year.

Elon Musk's xAI seeks $4.3 billion in funding

Elon Musk's AI startup, xAI, is in talks to raise $4.3 billion through equity investment. This is in addition to the $5 billion the company is trying to borrow. xAI, which created the Grok chatbot, needs the money because it has already spent most of its previous funding.

Micron's Q3 earnings expected to grow from AI demand

Micron is expected to announce its fiscal Q3 2025 earnings on June 25. Analysts predict earnings per share (EPS) of $1.59, a big jump from last year's $0.63. Revenue is expected to be $8.885 billion, showing growth from the previous quarter. This growth is driven by strong demand for AI and High-Bandwidth Memory (HBM) products. Micron is investing in new facilities, including a DRAM chip plant in Idaho.

Sources

Meta Platforms AMD Nvidia xAI Micron AI Stock Investment Price Target Advertising TikTok AI Development Earnings Per Share Semiconductors Processors GPUs Data Centers Gaming Instinct MI400 series OpenAI Microsoft Oracle Humain Nebius Group NV NBIS Golden Cross Simple Moving Average (SMA) Moving Average Convergence Divergence (MACD) AI Infrastructure Elon Musk Grok Chatbot Funding Equity Investment Q3 Earnings High-Bandwidth Memory (HBM) DRAM Chip Plant