Nvidia Corp (NASDAQ:NVDA) has become the face of the AI boom, but it may not be the clearest proof that the trade is working. According to I/O Fund’s CEO and chief investment strategist Beth Kindig, the more revealing signal is coming from Meta Platforms Inc (NASDAQ:META) — a company whose AI investments are no longer just swelling capital budgets, but starting to show measurable returns in earnings.
- Track META stock here.
In her data-driven analyses, Kindig argues the market is early — not late — to AI monetization. While fears around runaway capital spending dominate headlines, the evidence she’s tracking suggests returns are finally starting to surface.
Earlier this month, her firm tied Nvidia’s strongest earnings performance in nearly two years with Broadcom’s understated commentary, framing both as signals that AI demand remains durable. But the clearest proof point, Kindig believes, sits outside the usual AI winners list: Meta Platforms.
Related: Nvidia At $20 Trillion Isn’t Crazy, Says Kindig
Returns From AI Spends Are Showing Up
Meta has become a flashpoint in the AI spending debate, as Big Tech continues to surprise markets with the scale of its data center investments. What’s being overlooked, Kindig argues, is that Meta’s latest earnings already reflect a return on that spend.
Rather than promising future payoffs, Meta is showing measurable gains tied directly to AI-driven improvements in ad efficiency, engagement, and monetization.
A Quiet Revenue Shift
Kindig’s analysis suggests Meta may now rank second only to Nvidia in AI-related revenue, potentially surpassing Microsoft Corp (NASDAQ:MSFT). If accurate, that positions Meta not just as a heavy AI spender, but as one of the earliest large-scale AI monetizers.
That shift matters. It challenges the assumption that AI investments are still years away from meaningful returns.
Why The Market May Be Early
The “AI bubble” narrative assumes spending is racing ahead of profits. Meta complicates that view. If one of the largest AI investors is already seeing tangible returns, the broader monetization wave may arrive sooner than consensus expects.
In that light, skepticism around AI may be less a warning sign — and more a lagging indicator.
Read Next:
Photo: Shutterstock
Recent Comments