Meta and Samsung Fuel AI Capex Boom, Keeping Risk Sentiment Alive

Despite the looming specter of geopolitical conflict and a fractured Federal Reserve, the “American Exceptionalism” trade found fresh fuel in Q4 earnings from tech giants Meta Platforms and Samsung Electronics. The results confirmed that the Artificial Intelligence infrastructure build-out is accelerating, providing a critical floor for global equity sentiment and the US Dollar.

Key Data Snapshot

• Meta Platforms surged 11% on $59.89B revenue.
• Capex projection raised to $135 billion by 2026.
• Samsung Electronics operating profit soared 209% YoY.

The Capex King

Meta shares surged over 11% in after-hours trading after smashing revenue expectations ($59.89B) and raising guidance. Crucially for the broader market, Mark Zuckerberg announced a staggering increase in capital expenditure (Capex), projecting up to $135 billion in spending by 2026—nearly double the previous year's investment.

This aggressive spending plan is a direct injection of liquidity into the semiconductor and hardware supply chain, validating the “AI Capex” trade that has powered the Nasdaq 100.

Semiconductor Validation

Across the Pacific, Samsung Electronics reported a record-breaking quarter, with operating profit soaring 209% year-over-year. The South Korean giant regained the top spot in the DRAM market, driven by insatiable demand for HBM (High Bandwidth Memory) chips used in AI accelerators.

• Key Signal: Samsung confirmed it is now supplying Nvidia, further tightening the supply-side narrative for AI hardware.

Forex Market Impact

The strong tech earnings create a complex dynamic for currency traders: