Last week, both NVDA and META in the Mag7 performed very well. Let’s sort out what happened with these two.

【META】
1⃣ Meta announced it may rent out excess/oversupplied compute capacity. Combined with news that Meta will continue to ramp up capital expenditures in the coming days, this previously addressed the market concern that Meta’s capex might not translate into ROI. This time, Mark Zuckerberg seems to be answering the question of “if you can’t use it, you can still rent it out to others.”
2⃣ Meta will double its compute capacity next year to 14GW. After the news came out, Meta dropped 4% at the open.
3⃣ Meta released Muse Spark 1.1 (it’s said that once it was released it topped the charts immediately, at a level comparable to Opus 4.8 / GLM 5.2, but the price is even cheaper than glm). It directly moved Meta from -4 to +4.
4⃣ A semi-sector research report said that Meta has surpassed Google and is now the company most likely to catch up to openAI + Anthropic.

【NVDA】
This week, there was a roadshow involving Nvidia and JPMorgan Chase. Leaving aside the fundamentals for now.
JPMorgan said that the previous pressure on NVDA’s stock price was because growth-stock funds were already fully allocated or even overweight Nvidia, so institutions couldn’t buy more.
But this roadshow had many more value-stock funds, because NVDA has started to attract value investors (for example, the dividend yield has reached 50% this year, and the forward PE is already below 20). This may also explain why NVDA has been relatively strong over the past few days.