Meta’s Nuclear Ambition: A $100 Billion Bet on AI’s Energy Future

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As Meta Platforms prepares to release its fourth-quarter earnings, the tech giant finds itself at a pivotal crossroads. While its shares have declined approximately 8.5% since the start of the year, CEO Mark Zuckerberg has unveiled a staggering strategic pivot: a massive commitment to nuclear energy. The company plans to secure 6.6 gigawatts of new nuclear capacity to power its expanding fleet of artificial intelligence data centers. This move raises a critical question for investors: can such an initiative justify the projected capital expenditures exceeding $100 billion for the current year?

All eyes are on Wednesday’s financial report. Market experts anticipate Q4 revenue in the range of $56 to $59 billion, which would represent year-over-year growth surpassing 20%. Adjusted earnings per share are forecast at $8.19. The options market is pricing in a potential share price swing of up to 6.7% following the announcement.

This comes against the backdrop of a significant strategic announcement. Meta is addressing the immense power demands of its AI operations through an unconventional partnership with reactor developers TerraPower and Oklo. The planned 6.6 gigawatts of nuclear capacity is substantial enough to power millions of homes—or, in this case, Meta's computational infrastructure.

Soaring Expenditures and Market Reaction

The scale of Meta's investment is unprecedented. Management had previously guided for 2025 capital expenditures between $70 and $72 billion during the third-quarter earnings call. Expectations for 2026 point to a further increase beyond the $100 billion mark. These projections contributed to a share price decline of roughly 20% following the October 29, 2025, disclosure.

Despite these hefty outlays, the core business demonstrates robust health. Advertising revenue, supercharged by AI-driven tools, now runs at an annualized rate exceeding $60 billion. Furthermore, Meta AI has surpassed the milestone of one billion monthly active users.

Divergent Signals from Major Holders

Recent regulatory filings reveal a split in sentiment among key stakeholders. Ritholtz Wealth Management increased its position by 8.4% in the third quarter, acquiring nearly 38,000 shares valued at approximately $28 million. Conversely, corporate insiders have been net sellers over the past 90 days, divesting over 40,000 shares for about $25 million.

Notably, insiders continue to hold a significant 13.61% of the company’s equity, suggesting a degree of long-term conviction. The challenge for Zuckerberg will be to extend that confidence to the broader investment community.

Valuation and the Path Forward

From a valuation perspective, Meta trades at a forward price-to-earnings ratio near 21. This places it notably below the sector average and the valuations commanded by other technology titans. The consensus analyst price target stands around $818, implying an upside potential of more than 24% from current levels.

The central task for Zuckerberg during the upcoming earnings call will be to articulate a clear roadmap. Investors will demand a convincing explanation of how these monumental investments in energy infrastructure and AI will translate into medium-term financial returns. The company’s ability to justify its $100 billion spending plan while maintaining growth in its advertising engine will likely define its trajectory for the coming year.