Shares of Meta Platforms (META 3.91%) surged higher on Monday. The company’s stock gained 3.9% as of market close, but was up as much as 4.4% earlier in the day. The move up comes as the S&P 500 (^GSPC 1.76%) and Nasdaq Composite (^IXIC 2.27%) gained 1.8% and 2.3%, respectively.
The social media giant is in talks with a major Indian conglomerate to expand its artificial intelligence (AI) footprint in the country.
The largest AI data center in the world
It was reported this weekend that Meta had held discussions with Reliance Industries, a massive conglomerate and the largest company in India. The two are looking to reach a deal that would expand Meta’s AI offerings in the rapidly developing country. The partnership would see Meta’s AI models hosted by Reliance in the new AI data center it plans to build in Jamnagar, Gujarat. When completed, it will be the largest of its kind in the world, according to the company.
Meta’s core business is booming
AI dominance in India could be a boon for Meta, but if the deal were to fall through — as deals sometimes do — the company is in a strong position where it counts. On the strength of its massive social media reach across several of the most popular platforms in the world, Meta brought in record revenue last year. The $164.5 billion in 2024 sales represented a 22% increase from 2023. Its core business continues to grow, and with a price-to-earnings ratio (P/E) of 25.7, Meta’s stock is well priced.
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