Tonight, witness history! Just now, a surge! Tech giants, suddenly receive good news

AI heralds another heavy positive catalyst.

Driven by better-than-expected earnings, tonight, after the US stock market opened, the shares of American tech giant Meta surged by over 11% at one point. Its latest financial report shows that both the Q4 2025 revenue guidance and the Q1 2026 revenue guidance significantly exceeded market expectations. Meta expects capital expenditures in 2026 to reach as high as $135 billion, nearly double that of last year.

Regarding the strong capital expenditure by tech giants like Meta and Microsoft, JPMorgan analyst Harlan Sur commented that spending on AI (artificial intelligence) infrastructure has clearly entered a new expansion cycle. The related investments will focus on data centers, networks, and custom chips, driving continuous benefits across the semiconductor supply chain.

Additionally, the precious metals market surged across the board again, with spot gold rising over 2% at one point, spot silver surging over 3%, and LME copper skyrocketing over 11%, collectively hitting new all-time highs. Analysts pointed out that the demand logic driven by AI infrastructure and power grid construction remains intact, and the trend of loose liquidity domestically and internationally persists, providing strong support for copper prices.

Super Giants Surge

On the evening of January 29, Beijing time, the three major US stock indices opened with mixed gains and losses. Meta’s stock price soared sharply, rising over 11% at one point. As of the time of writing, the increase has slightly narrowed to 9%.

On the news front, the company’s latest disclosed financial report shows that both the Q4 2025 revenue and the revenue guidance for the first quarter of this year exceeded market expectations. Meanwhile, the company’s full-year capital expenditure forecast also surpassed analyst estimates.

Specifically, Meta achieved revenue of $59.893 billion in Q4 2025, higher than the analyst consensus of $58.42 billion, representing a 24% year-over-year increase; adjusted non-GAAP EPS was $8.88, above the expected $8.23; daily active users reached 3.58 billion, in line with Wall Street expectations.

Meta stated that it expects Q1 2026 revenue to be between $53.5 billion and $56.5 billion, higher than the analyst forecast of $51.41 billion. It also expects total expenditures in 2026 to be between $162 billion and $169 billion.

Meta further projected that full-year capital expenditure will reach between $115 billion and $135 billion, exceeding the average analyst expectation of $110.6 billion. This figure is nearly twice its capital expenditure in 2025 ($72.2 billion).

Meta explained that the significant increase in capital spending is due to “supporting R&D work at our Meta Superintelligence Labs (its AI division) and core business, with related investments increasing year-over-year, driving capital expenditure growth.”

Analysts pointed out that Meta founder and CEO Mark Zuckerberg is pushing an aggressive strategy, heavily investing in infrastructure, computing power, and talent, which he believes are necessary conditions for winning in the fierce AI competition.

Zuckerberg said that the core of his strategy is to preemptively deploy computing power to prepare for the company’s pursuit of “superintelligence.” “Superintelligence” is a theoretical milestone, referring to AI capabilities that can match or surpass human performance across multiple tasks.

Zuckerberg also revealed that Meta will release its latest cutting-edge AI model (“Avocado”) in the “coming months.”

“AI Infrastructure Construction Sparks a New Expansion Cycle”

Harlan Sur, JPMorgan analyst, pointed out when interpreting Meta and Microsoft’s latest earnings reports that the intensity of AI infrastructure spending has clearly entered a new expansion cycle.

Both tech giants stated in their latest financial reports that the supply tightness of AI computing power will persist through 2026. This indicates that, driven by the accelerated deployment of foundational models, AI agents, and commercial applications, demand for computing power continues to outpace supply, fueling ongoing investments in cloud computing and large-scale enterprise infrastructure.

JPMorgan believes that under the current supply-demand pattern, the capital expenditure of major tech companies still has room for upward adjustment. Investments will focus on data centers, servers, and network infrastructure, further boosting the performance of related semiconductor supply chains. This investment trend is expected to continue until 2027.

Notably, Microsoft and Meta are accelerating their strategic development of custom ASIC chips to improve energy efficiency and expand application scenarios.

Regarding Meta, its self-developed chip project MTIA continues to iterate, currently supporting inference for search engines, and plans to expand to core ranking, recommendation training, and inference workloads in Q1 2026. JPMorgan pointed out that Meta’s chip design partner Broadcom will benefit from this, and revenue from Meta is expected to see significant growth in 2026.

As model size and complexity increase, computing power demand grows exponentially. Cloud service giants’ capital expenditure guidance continues to focus on AI infrastructure investments. The latest plans of Meta and Microsoft further confirm JPMorgan’s judgment: investments related to networks, custom chips (ASICs), and GPUs for accelerating computing and storage will remain strong in the medium to long term.

Copper Prices Surge

Stimulated by the AI infrastructure wave, copper prices continued to rise. Tonight, LME copper surged over 11%, reaching a high of $14,527.5 per ton, again hitting a new all-time high.

Analysts pointed out that the improvement in supply-demand dynamics combined with macroeconomic benefits has driven copper prices to enter a strong upward trend.

Guotai Haitong Securities believes that copper mine supply remains tight, with spot copper concentrate processing fees continuing to decline. The demand logic driven by AI infrastructure and power grid construction persists. Meanwhile, the trend of loose liquidity domestically and internationally remains, providing strong support for copper prices.

In typical AI data centers, copper usage is considerable. A standard cabinet requires hundreds of meters of copper busbars, and the power distribution system alone uses over 1 ton of copper. Additionally, within chip packaging, the use of copper-based thermal interface materials, copper microchannels for cooling, and other components is rapidly increasing.

Looking ahead, Galaxy Securities believes copper prices still have significant upside potential. First, although copper prices have repeatedly hit new highs, after removing inflation factors, copper prices have not yet reached the heights of previous super cycles; second, the international monetary order is being reshaped, and the foundation of the US dollar as a major asset anchor is weakening. Using gold as a benchmark, the current copper-to-gold ratio remains at a historically low level.

On the investment front, Galaxy Securities suggests re-evaluating copper’s allocation value from a medium- to long-term perspective, focusing on copper resources, high-quality mining companies, and industry chains highly related to electricity and AI infrastructure, to seize investment opportunities driven by demand expansion and supply rigidity during the super copper cycle.