Jim Cramer Believes Meta’s (META) Developing Its Own Cloud Business

We recently published 10 Stocks On Jim Cramer’s Mind & His Thoughts On Enterprise AI. Meta Platforms, Inc. (NASDAQ:META) is one of the stocks on Jim Cramer’s mind.

Social media giant Meta Platforms, Inc. (NASDAQ:META)’s shares are down by 4% over the past year and are flat year-to-date. Earlier this week, the firm made an important announcement after it announced a partnership with AI GPU giant NVIDIA. Through the deal, Meta Platforms, Inc. (NASDAQ:META) will use NVIDIA’s GPUs to boost its core business operations as well as AI training and inference needs. The firm is also reportedly diversifying its product lineup by developing a new application to allow users to send one-time photos. Meta Platforms, Inc. (NASDAQ:META)’s fourth quarter earnings saw the firm’s $59.9 billion in revenue and $8.88 in earnings per share beat analyst estimates of $58.35 billion and $8.19. Christmas traffic and AI-led efficiency improvements were among the factors that drove the performance. Cramer has frequently tied apprehensions about Meta Platforms, Inc. (NASDAQ:META)’s capital expenditure to the fact that it does not have a cloud computing business. After the latest deal with NVIDIA, he wondered whether this would change:

“Now the thing that I liked about NVIDIA, was that at the end of the day, and David, I’m going to put this to you as being seminal. I am beginning to believe that Mark Zuckerberg is trying to develop his own web services. Do you know that he walked up eight billion dollars, six billion dollars worth of Corning material, you know Corning makes the fiber. This note that NVIDIA put out about how he wants millions, use millions of AI chips in data center. . .any chance that maybe this is him making a web service company?”

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Disclosure: None. This article is originally published at Insider Monkey.