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

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.”