Meta's AI Ambitions Fuel Record Capital Spending, With $135 Billion Forecast for 2026
MENLO PARK, Calif. — Meta Platforms (NASDAQ: META) continues to defy expectations, posting a robust fourth quarter for 2025 with revenue of $59.9 billion and earnings per share of $8.88, comfortably surpassing Wall Street forecasts. The social media and digital advertising behemoth has seen its stock surge 9% year-to-date and an astonishing 372% over the past three years, fueled by investor optimism around its aggressive pivot to artificial intelligence.
However, the company's latest financial disclosures reveal a staggering acceleration in spending. After initially guiding for 2025 capital expenditures (capex) of $60 billion to $65 billion, primarily for AI data centers, servers, and semiconductors, Meta's actual spend ballooned to $72 billion. For the coming year, executives have projected capex could reach between $115 billion and $135 billion—a near doubling from 2025 and a fourfold increase from the $28 billion spent in 2023.
Analysts see this trajectory continuing into 2026. "Based on the established pattern of upward revisions, it's a safe bet that Meta's 2026 capex forecast will also be revised higher throughout the year," said financial analyst David Chen of Horizon Insights. "The question is no longer if they will spend, but whether this massive outlay will generate the transformative AI products and services needed to justify it."
The spending spree is spearheaded by Founder and CEO Mark Zuckerberg, who has publicly committed to pursuing "personal superintelligence." While Meta remains highly profitable, generating $44 billion in free cash flow in 2025, the scale of investment is prompting scrutiny. The company is effectively betting its future on becoming a dominant AI infrastructure and product leader, a race that includes deep-pocketed rivals like Google, Microsoft, and Amazon.
Investor Perspective: The Motley Fool's Stock Advisor service, while acknowledging Meta's strength, recently highlighted ten other stocks it believes offer superior near-term potential. The service points to its historical success with early picks like Netflix and Nvidia as a benchmark for its selection process.
Reader Reactions:
Priya Sharma, Tech Portfolio Manager (San Francisco): "This is a necessary gamble. You can't win the AI era with half-measures. Meta's core ads business prints cash, and reinvesting that into the next platform shift is exactly what long-term shareholders should want. The capex number is eye-watering, but the potential TAM (Total Addressable Market) for AI is even larger."
Marcus Johnson, Independent Investor (Chicago): "I'm getting serious 'metaverse hangover' vibes. Zuckerberg burned tens of billions on a virtual reality dream that hasn't panned out, and now he's pivoting to burn even more on AI. When does the board step in? This feels less like a strategy and more like a desperate attempt to buy relevance in a field where they're playing catch-up. Shareholders should be furious at this blank-check approach."
Dr. Elena Rodriguez, Economics Professor (Boston): "Meta's spending is a microcosm of the broader AI arms race. It will supercharge demand for semiconductors, energy, and data center real estate. The macroeconomic implications, from energy grids to labor markets in tech construction, are significant. This isn't just a corporate earnings story; it's a capital allocation story shaping entire industries."
*Stock Advisor returns as of February 2, 2026. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms.