TNB Tech Minute: Meta Turns to Nuclear Power to Fuel AI Ambitions - Tech News Briefing
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Victoria Craig: Here's your TNB Tech Minute for Tuesday, June 3rd. I'm Victoria Craig for the Wall Street Journal. Meta is turning to nuclear power to fuel its artificial intelligence ambitions. The social networking giant said today, it struck a deal with Constellation Energy to buy 20 years of power generation from an Illinois nuclear plant. Though financial arrangements were not disclosed Constellation's CEO said the deal will help cover relicensing, upgrades and maintenance. He said running a plant for 20 more years requires billions of dollars in capital. Elsewhere, the chief executive of Taiwan's TSMC said the chipmaker faces limited impact from tariffs. He also reaffirmed at the company's annual shareholder meeting today that AI demand remains strong and that he expects revenue and earnings to reach new all-time highs this year. Though the CEO said tariffs are typically paid by importers and won't directly affect the company, he warned if tariffs lead to a global economic downturn and higher prices, that could dampen demand. And finally, an information technology security incident has forced Victoria's Secret to delay today's scheduled release of its quarterly earnings. The company said its financial results weren't affected by the incident, but the restoration process has prevented employees from accessing certain information needed to prepare the results. Victoria's Secret hasn't disclosed a new earnings release date. It said the incident hasn't caused a material disruption to operations so far, but noted it has racked up related expenses that could dent future financial results. For a deeper dive into what's happening in tech, check out Wednesday's Tech News Briefing podcast.
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Analysts' forecasts of the company's revenue and earnings reflect its robust growth prospects: TSMC's forward-price-to-earnings (P/E) multiple has compressed considerably over the last year. My suspicion is that investors have been spooked by the possibility of new tariffs hurting chip demand. Moreover, geopolitical concerns relating to China's threats toward Taiwan are also likely priced into TSMC stock as well. Although both of these concerns are valid, I see them as near-term headwinds. Meanwhile, AI's largest developers still plan to spend heavily on infrastructure for many years, regardless of this uncertainty. In addition, TSMC has taken a proactive approach to geographic expansion, making significant investments in new manufacturing facilities in the U.S. and Europe. Lastly, Taiwan Semi's forward P/E is the lowest among the AI semiconductor stocks in its peer group. 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Adam Spatacco has positions in Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Intel, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft, short August 2025 $24 calls on Intel, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. This Artificial Intelligence (AI) Stock Could Be the Best Bargain in the Market Right Now was originally published by The Motley Fool
