NVIDIA Corp (NASDAQ:NVDA) shares are trading higher in Wednesday’s after-hours session after Meta Platforms Inc (NASDAQ:META) raised its capital expenditures outlook, citing increased data center spending.
Meta said it now expects 2022 capex to be in the range of $32 billion to $33 billion, updated from previous guidance of $30 billion to $34 billion. The company now expects capex for 2023 to be between $34 billion and $39 billion, driven by investments in data centers, servers and network infrastructure.
Meta said Reality Labs expenses are included in its total expense guidance.
“We do anticipate that Reality Labs operating losses in 2023 will grow significantly year-over-year. Beyond 2023, we expect to pace Reality Labs investments such that we can achieve our goal of growing overall company operating income in the long run,” the company said.
Meta also noted that an increase in AI capacity is driving all of its capex growth in 2023 substantially.
Related Link: Meta Platforms Investors Run From Q3 Earnings: Revenue Beat, EPS Miss, Daily Users Up, Costs Set To Climb In 2023
Earlier this year, Nvidia laid out a vision to transform data centers into “AI factories” using powerful hardware. In the company’s most recent quarter, Nvidia reported data center revenue of $3.81 billion, which was up 61% year-over-year, according to Benzinga Pro.
NVDA Price Action: Nvidia has a 52-week high of $307.11 and a 52-week low of $108.13.
The stock was up 4.91% in after-hours at $135.29 at the time of publication.
Photo: courtesy of Nvidia.
