Meta Stock Set for 18-Day Winning Streak. Watch Its Chip Ambitions.

Meta Platforms Inc. (META) shares have been on a tear, rising for 18 consecutive days, marking one of the longest winning streaks in the company's history. The social media giant's stock has surged by 17.47% over the last 17 days, registering one of its longest winning streaks under the leadership of Mark Zuckerberg. As of Tuesday's close, the stock trades at $719.80 apiece, just 0.7% shy of its 52-week high of $725.01 per share. Despite the constant surge in the stock, Meta's over-optimistic momentum indicators hint at a likely pullback. The company's simple daily moving averages suggested a bullish uptrend, with the share price well above its 200-day simple moving average of $548.26, 50-day average of $630.51, eight-day average of $707.43, and 20-day average of $665.82. The momentum indicators were also very strong, with a relative strength index of 80.70 and a positive MACD (moving average convergence/divergence) indicator of 28.44, indicating that the stock was overbought and potentially nearing exhaustion.



Meta's chip ambitions have been a significant driver of its stock momentum. The company is reportedly in talks to acquire AI chip firm FuriosaAI, which could further bolster its AI hardware infrastructure. This move aligns with Meta's broader strategy to invest in AI hardware infrastructure, which could help the company stay competitive in the AI race and capitalize on the growing demand for AI-driven products and services. Additionally, Meta's in-house chip development plans could help the company optimize its hardware for AI workloads, leading to improved performance and energy efficiency.



Despite the recent stock surge, Meta faces headwinds in the AI race, with DeepSeek's AI model ahead of Meta's Llama model, according to Piper Sandler. However, Wedbush analyst Dan Ives remains bullish on the company's AI monetization strategy, highlighting the potential for AI innovations to be an incremental $100 per share for Meta. As the company ramps up its AI efforts, investors will be watching closely to see how Meta's chip ambitions and AI initiatives drive its long-term growth prospects.

In conclusion, Meta Platforms Inc. (META) shares have been on an impressive 18-day winning streak, driven by strong financial performance, AI initiatives, and chip ambitions. While the stock's over-optimistic momentum indicators hint at a potential pullback, Meta's long-term growth prospects remain promising, as the company continues to invest in AI hardware infrastructure and optimize its hardware for AI workloads. Investors should keep a close eye on Meta's chip ambitions and AI initiatives, as these strategic moves could significantly impact the company's competitive position in the AI landscape.