Investors continue to underestimate artificial intelligence (AI), the secular tailwinds behind the chipmaker's supercharged growth.

And both Meta and Microsoft were already on track to spend more than 30% of this year’s revenue on capital expenditures, compared with about 15% to 20% historically. Those outlays were already beginning to look like mere table stakes after Google parent Alphabet used its report last week to bump up its own capex spending plans for this year to $85 billion.

The parent company of Facebook and Instagram continues to exceed expectations for ad sales. Analysts are less sure about its big swings.

Meta raced to a new all-time high on Wall Street, with the parent company of Facebook and Instagram seeing its share price increase 13%

In a new open letter, Mark Zuckerberg wrote that he is “extremely optimistic” that super-intelligent AI will play a major role in moving humanity forward. And unlike some other big players in the AI industry,

If the company’s core business continues growing at the current rate and its Superintelligence efforts gain traction, “there’s no telling what the ceiling is for Meta,” Bernstein analysts said.

The S&P 500 rose 0.5% and is just above the record high it set on Monday. The Dow Jones Industrial Average was mostly unchanged as of 12:01 p.m. Eastern.

And both Meta and Microsoft were already on track to spend more than 30% of this year’s revenue on capital expenditures, compared with about 15% to 20% historically. Those outlays were already beginning to look like mere table stakes after Google parent Alphabet used its report last week to bump up its own capex spending plans for this year to $85 billion.