🚀 AI Power Play: Meta vs Google — Who Rules the Mag 7?
Latest Moves
• $Alphabet(GOOG)$
• $Meta Platforms, Inc.(META)$ : In advanced talks to invest US $14.8 b for a 49 % stake in Scale AI, securing premium data pipelines and top-tier talent.
Why It Matters
• Every 1-ppt uptick in Google Cloud’s margin adds ~US $4 b to Alphabet’s operating profit.
• Meta's 4 m+ advertisers crave sharper targeting; even a modest lift in ad ROI could unlock billions in incremental spend.
Don't Forget the Arms Dealer
• Nvidia (NVDA) still supplies ~80 % of AI accelerator chips—owning the “picks-and-shovels” that both hyperscalers need.
Numbers to Track This Earnings Season
• Alphabet Cloud revenue growth > 25 % YoY — bullish signal.
• Meta 2025 capex guide > US $40 b — confirms aggressive AI build-out.
• Nvidia GPU lead-times shrinking — could tilt pricing power back to hyperscalers.
Playbook Snapshot
• Momentum trade: Overweight GOOG on fresh Cloud wins.
• Value pick: Accumulate META at ~22× forward P/E with an AI monetisation kicker.
• Core hedge: Hold NVDA as universal supplier across the stack.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
