Meta, Microsoft roar higher on strong earnings as AI spending booms

Group 1: Earnings Performance - Meta's shares increased by 12% and Microsoft's by 5% following better-than-expected earnings reports that exceeded both revenue and profit expectations [1] - Microsoft achieved a market capitalization exceeding $4 trillion, joining Nvidia in this exclusive category [1] Group 2: Capital Expenditures - Meta's capital expenditures for the full year are projected to be between $66 billion and $72 billion, raising the lower end of its previous estimate [2] - Microsoft anticipates over $30 billion in capital expenditures and assets acquired through finance leases for the fiscal first quarter, surpassing analyst expectations of $24.23 billion [2] Group 3: Industry Impact - Analysts at Citi suggest that the increased capital expenditures from Meta and Microsoft will benefit chipmakers, with Microsoft accounting for approximately 8% of Advanced Micro Devices' sales and Meta for about 2% of Broadcom's sales [3] - The analysts believe that Advanced Micro Devices and Broadcom will be the primary beneficiaries of the increased capital expenditures from both companies [3]