Nvidia CEO says nobody uses AI better than Meta, backing its massive spending spree

Nvidia CEO Jensen Huang said in a CNBC interview that "nobody uses AI better than Meta," endorsing Meta's AI strategy as the company plans capital expenditures of $125 billion to $145 billion for 2026. Meta's stock rose nearly 1% in premarket trading following the comments, and 57 of 64 analysts rate the stock a "Buy" or higher, with an average price target of $826.75.

Via lifehacker.com Nvidia CEO says nobody uses AI better than Meta, backing its massive spending spree Jensen Huang's endorsement arrives at a convenient moment, just as Meta's stock was nursing a 7% decline and investors were questioning its eye-watering AI budget. When the CEO of the company selling the shovels in a gold rush tells you one particular miner is digging better than everyone else, it’s worth paying attention. Jensen Huang, who runs Nvidia, declared in a CNBC interview that “nobody uses AI better than Meta,” offering what amounts to a high-profile stamp of approval on Meta’s aggressive AI strategy. The timing is notable. Meta’s stock had just taken a 7% hit, and the company is staring down a capital expenditure plan for 2026 that ranges between $125 billion and $145 billion, almost all of it directed at AI infrastructure. The case Huang is making Huang’s argument isn’t just about raw spending. He pointed to the fact that Meta has successfully transitioned from traditional CPU-based systems to advanced generative AI technology. That shift has tangible products attached to it: better content recommendations in your Instagram and Facebook feeds, sharper ad targeting for advertisers, and new creative tools that help brands generate ad content using AI. The key distinction Huang drew is that Meta’s AI investments are already showing up in the company’s financial results. In a market littered with companies making grand AI promises, Meta is one of the few that can point to actual earnings improvements tied to its AI deployments. Wall Street’s reaction The market responded to Huang’s comments with cautious optimism. META shares climbed nearly 1% in premarket trading the day after the interview aired, a modest bounce but a meaningful one given the stock’s recent slide. Analyst sentiment remains overwhelmingly positive. Out of 64 analysts covering Meta, 57 rate the stock as a “Buy” or higher. The average price target sits at $826.75, which implies roughly 38% upside from where the stock was trading at the time of Huang’s comments. Why Nvidia cares about Meta’s success There’s an obvious self-interest angle here worth acknowledging. Nvidia is the dominant supplier of the GPUs powering Meta’s AI infrastructure. When Huang praises Meta’s AI capabilities, he’s also, in a roundabout way, praising the hardware making it possible. Meta is one of Nvidia’s largest customers, and a Meta that feels confident about its AI returns is a Meta that keeps writing enormous purchase orders for Nvidia’s chips. The bigger picture for AI spending Meta’s pivot is instructive. The company rebuilt core systems, moving from CPU-based recommendation engines to generative AI architectures that fundamentally changed how content and ads are served to billions of users. The result has been measurable improvements in engagement and advertising efficiency. The risk is that $125 billion to $145 billion is still a staggering amount to spend in a single year. If ad revenue growth slows or the macro environment deteriorates, that spending level could quickly shift from “bold and visionary” to “reckless.” For now, though, the CEO of the world’s most valuable chipmaker is telling the market that Meta’s bet is the smartest one in the room. Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy https://cryptobriefing.com/editorial-policy/ .