Meta Partners with Arm to Power AI Personalization Systems with Energy-Efficient Data Center Chips

Meta Platforms Inc. (NASDAQ:META) is one of the best big tech stocks to invest in now. On October 1, Meta Platforms announced a partnership with chip technology provider Arm Holdings (NASDAQ:ARM) to power the systems driving personalization across its applications. This is part of a broader trend of companies upgrading the chip technology underpinning their services.

Meta will use Arm-based data center platforms to power its AI ranking and recommendation systems, which are crucial for discovery and personalization within its apps. Arm provides the chip architecture blueprint that defines what a CPU can do and which applications it can run.

Meta Partners with Arm to Power AI Personalization Systems with Energy-Efficient Data Center Chips

The companies stated that the Arm-based approach is expected to deliver higher performance and lower power use compared to x86 systems. While Arm-based chips already dominate the smartphone market, they are rapidly gaining traction in the personal computer and server CPU markets.

Meta Platforms Inc. (NASDAQ:META) develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality and mixed reality headsets, AR, and wearables worldwide. It has two segments: Family of Apps/FoA and Reality Labs/RL.

Arm Holdings (NASDAQ:ARM) architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers.

While we acknowledge the potential of ARM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ARM and that has 100x upside potential, check out our report about this cheapest AI stock.

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