MarketsMar 12, 2025
Meta Manages To Buck Marketwide Downturn, Stay in the Green By Remaining Market’s Defensive Mag7 Pick
Silicon Pivot
Noah Weidner
Discover
With the market down in the dumps, not even the high-flying Magnificent 7 are offering any help. Tesla is down an astonishing 34% year-to-date, while Apple, Amazon, and Alphabet are down ~11%, making Microsoft’s 8% decline look excitable by contrast. But there is one 800 lb gorilla still standing, even despite the market’s darker shade — Meta.
Software company, meet hardware: Especially now, Meta’s unique strength is its software, but the company is spending big to gain a proprietary advantage in the burgeoning AI space. According to Reuters, the firm has begun testing its own in-house AI training chip, with the aim of reducing its dependence on Nvidia. The chip, expected to be built on TSMC’s 5nm node, is scheduled to enter mass production next year. It won’t be the only one, as their Mag7 competition are all pursuing AI chips of their own in a race continuing to heat up despite limited indications that the investments will pay for themselves.
