Meta (META) stock slipped 2% on Monday morning after the company said it plans to raise up to $95 billion through equity financing to fund its AI infrastructure buildout. The initial $35 billion raise includes about $22.5 billion of Class A common stock and $12.5 billion of Series A mandatory convertible preferred stock. Chip suppliers Nvidia (NVDA), AMD (AMD) and Broadcom (AVGO) expressed interest in buying up to $5 billion of these shares in aggregate. Meta said the capital will support its core business and emerging AI opportunities, including its family of apps, the AI agent Muse and infrastructure.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
METAAI investmentNVDAsemiconductors
Open a keyword to see other news on the same topic.
Related tickers and likely impact
META
▼ Likely negativeMeta Platforms
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.7T |
| Close on 10/23/2026 | 642.26 |
| Change that session | -1.02% |
NVDA
▲ Likely positiveNvidia
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/23/2026 | 211.00 |
| Change that session | -0.57% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- AI chip stocks bounce back as hyperscaler earnings loom, META equity raise in focus
AI chip stocks rebounded on October 19, with the Nasdaq up 1.3%, NVIDIA gaining 1.38% and Meta Platforms slipping 0.55%. Evercore ISI sees the recent pullback as coming ahead of a strong hyperscaler earnings season, and NVIDIA expects top five hyperscaler capex to reach nearly $800 billion in 2026. Meta guided 2026 capex to $130 billion to $145 billion, while second-quarter free cash flow fell to $784 million from $8.55 billion a year earlier. Analysts expect a Meta stock sale, and according to the article, the market is reportedly comfortable with about $30 billion, though Meta has not announced an offering. The article notes H100 pricing has held up, NVIDIA says it has supply for about 70% of demand, and GPU-backed loans are seen as the go-to option over unsecured debt at 15%.
- Meta is raising even more cash to fund the AI build-out — as much as $95B
Meta plans to raise as much as $95 billion to keep funding its AI build-out, through several stock sales. The plan includes $35 billion of common and preferred stock and up to $60 billion through an at-the-market share sale program. Nvidia, AMD and Broadcom have together committed to buy $5 billion of the common shares. Shares, which had been trading higher, slipped in pre-market trading, and the hosts noted the spending is already baked into estimates. Investors are questioning when the heavy spending will pay off, with some reports saying Meta's models are not keeping up with rivals.
- Pre-Markets Remain Spooked by AI Investment Capacity
Pre-market futures fell after the Nasdaq dropped nearly 700 points (-2.6%) at the previous close, and the Dow was down 377 points pre-market. Doubts about AI infrastructure spending, which Meta Platforms' earnings report raised, weighed on Dow stocks such as Caterpillar (CAT), down 4.9% pre-market ahead of its Q3 report next Thursday. The 10-year yield fell below 5% for the first time in a month, while oil stayed high, with WTI over $100 per barrel and Brent at $115 amid reports of planned U.S. and Israeli strikes on Iranian nuclear facilities. American Express (AXP) beat estimates with earnings of $4.68 per share, but revenue of $20.06 billion missed, while SLB beat by 2 cents at $0.64 per share on $9.45 billion in revenue. Flash PMIs are expected at 55.3 for manufacturing and 58 for services, and the final University of Michigan survey at 46.3.
- Meta, AI Stocks Tumble As AI Spending Fears Reignite
- MARKETS LIVE : Wall Street opens lower as AI spending doubts and oil price surge weigh on sentiment
Wall Street opened lower on Thursday as doubts over returns on heavy AI spending, disappointing Tesla and Meta results, and surging oil prices hit sentiment. The Dow fell 67.7 points (0.13%) to 52,788.41, the S&P 500 dropped 62.6 points (0.81%) to 7,694.62, and the Nasdaq Composite lost 394.5 points (1.48%), with the Nasdaq 100 losing about 500 points in the first 13 minutes. Meta fell 6.51% to $652.10, Tesla 1.91% to $379.10 and Nvidia 1.76% to $218.07. Oil prices hit their highest since May, with Brent above $111 a barrel, after the New York Times reported that the US and Israel had drawn up plans for renewed strikes on Iran following the November 3 midterm elections. Spot gold fell 1.46% to $4,071.56 an ounce, while the FTSE 100 edged up 0.01% to 10,754.13.
- AI credit risk grows as debt finances the infrastructure build - out
AI stocks may no longer be the sure bet they once were as credit risks grow, according to Dario Perkins of TS Lombard, who says debt is now the marginal source of funding rather than cash flow. He expects AI companies to issue around $700 billion in new bonds in 2027, with $400 billion from hyperscalers, which he notes exceeds the total issuance of all euro-area governments combined. CoreWeave plunged 25% last week on fears it is taking on too much debt, while Nvidia CEO Jensen Huang said capital for AI is scarce and holding back growth. Credit costs may rise, with CME FedWatch showing a 75% chance of another Fed rate hike in December. Still, Meta reported 26% revenue growth in the September quarter and Magnificent Seven earnings are expected to rise 33%, leaving open whether AI companies can justify their growing debt.
Related markets
Latest news
- Retiree Alleges Morgan Stanley Covered Call Strategy Cost Him His Apple and NVIDIA Shares; Reif Law Group Files Financial Elder Abuse Claims
Reif Law Group filed a petition in San Diego County Superior Court seeking FINRA arbitration against Morgan Stanley Smith Barney LLC and advisor Nicholas S. Westendorf on behalf of Michael J. Massery, a 77-year-old retiree. The petition alleges the firm placed him in a covered call strategy meant to protect his stock, then kept rolling the options for four years after he asked in writing to exit, until his Apple and NVIDIA shares were called away. Over more than 200 option transactions, the cost of exiting allegedly grew from about $434,000 to about $1 million. In December 2024, roughly 8,000 NVIDIA and 9,000 Apple shares were called away at strike prices far below market value, followed by a tax bill on the gains. The petition quotes an advisor's email stating the investor should have never been put into this strategy.
- Bretton Fund’s Views on Mobility Global (MBGL)
The Bretton Fund's Q3 2026 letter reports a -1.75% return for the quarter, versus +2.30% for the S&P 500. Microsoft and SAP were the strongest contributors, while Eagle Materials and Dream Finders Homes were hurt by a delayed housing recovery. The letter highlights Mobility Global (NYSE:MBGL), spun off from S&P Global at the start of July and renamed in February 2026, and says management judged its auto business to have little overlap with S&P Global's capital markets businesses. The stock closed at $18.76 on October 23, 2026, with a market capitalization of $5.53 billion, and returned 5.63% over the past month. Three hedge fund portfolios held it at the end of the second quarter, versus zero in the previous quarter.
- Elon Musk Warns Of 'Guppy-Level Death' For Hundreds of AI Cloud Firms. Others Are Not so Sure.
Elon Musk warned that more than 200 specialized AI cloud companies, known as neoclouds, could face widespread failures and consolidation as financing becomes harder to obtain. He said debt markets have almost entirely closed to firms without substantial revenue outside the AI data center business. CoreWeave and Nebius each lost more than 30% of their market value this month, and IREN fell about 40%, as the cost of insuring CoreWeave's debt against default rose sharply. Recent deals include CoreWeave's $4.2 billion convertible notes, a $3.5 billion Citi facility for Nebius and $2.8 billion in GPU financing for IREN. Nvidia and industry executives, however, say demand for computing power remains strong.
- JetBlue Airways Tumbles 16% as Creditors Hire Restructuring Advisers; United Airlines Rises 3%, Delta Edges Higher
JetBlue Airways shares fell 16% to $2.22 after a creditor group preparing for a possible restructuring hired restructuring advisers, according to a Wall Street Journal report; the group includes holders of senior bonds and a first-lien loan. Those bonds, backed by collateral tied to the loyalty program, have fallen to record lows. JetBlue has not commented on the hirings, and its CEO said in April the company was not considering bankruptcy this year. Meanwhile, United Airlines rose 3% to $100.75, Delta Air Lines rose 2% to $78.19, and the U.S. Global Jets ETF gained 0.8%. The article points to JetBlue's third-quarter 2026 report as the next key test.
- 98% Of Nvidia Analysts Have “Buy” Rating
Most analysts remain bullish on Nvidia: 54 of 55 on MarketBeat and 59 of 62 on Stock Analysis, a range of over 95% to 98%. The average price target is $325, versus a current price of $211, implying a potential rise of about 54%. The stock is up 725% over five years but has not beaten the S&P 500 this year. Revenue in the latest quarter rose 106% to $96 billion, yet skeptics such as Apollo economist Torsten Slok argue AI spending has delivered no financial payoff outside tech. Critics also say Nvidia's demand partly depends on its investments in its own chip customers, and by one count, communities opposed to data centers have delayed 200 of them this year.
- South Korea weighs fourth delay on its crypto gains tax, pushing it to 2029
South Korea is leaning toward delaying its crypto gains tax, due to start in January, until 2029, which would be a fourth postponement. Officials are concerned that users of domestic exchanges would bear most of the burden because the U.S. will not share crypto trading data until 2029, and one official said almost half the crypto market is in the U.S. Deputy Prime Minister Koo Yun-cheol had said in July the tax would take effect in January 2027, but his successor, Lee Hyung-il, said he would gather views from parliament, experts and industry. Under current rules, annual net income from crypto transfers or lending is taxed at 20%, or 22% including local income tax, after a 2.5 million won ($1,887) deduction. Parliament must approve the change, with a final decision expected by early December.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.