Meta's AI Investment Pays

Meta Platforms Inc. has reported strong Q2 2025 earnings, driven by its advertising business and strategic investments in artificial intelligence. The company's revenue reached $47.52 billion, with earnings per share (EPS) of $7.14, surpassing analyst expectations. This performance has led to a surge in Meta's shares, reflecting investor confidence in the company's direction.

Looking ahead, Meta anticipates revenue between $47.5 billion and $50.5 billion for Q3 2025. The company is significantly increasing its capital expenditure, with projections ranging from $64 billion to $72 billion for 2025, to bolster its AI infrastructure and data centre expansions. This investment supports Meta's ambition to develop advanced AI technologies, including 'superintelligence', and to attract top AI talent.

Despite ongoing investments in Reality Labs, Meta's focus on AI is viewed as a key driver for future growth. The company's AI-powered advertising tools have shown promise, with increased adoption and a boost in conversions. Meta's strategic shift towards AI, including the development of Meta Superintelligence Labs (MSL), signals a long-term commitment to leading the AI race.