The article says NVIDIA, AMD and Broadcom, Meta's major chip suppliers, may take part in the large stock offering Meta is using to fund AI spending, building on existing ties such as Broadcom's custom AI chip deal running through 2029 and AMD's warrant. Q3 revenue rose 26.07% to $64.60 billion and beat estimates, but GAAP EPS of $3.83 fell short because of a $9.89 billion litigation charge, and free cash flow was -$2.12 billion on $34.906 billion of capex. 24/7 Wall St.'s model sets a 12-month price target of $804.16, 25.14% above $642.62, and assigns the stock a buy rating. The piece also flags share dilution and upcoming youth litigation trials as risks.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
METANVDAAI investmentsemiconductorsearnings
Open a keyword to see other news on the same topic.
Related tickers and likely impact
META
▲ Likely positiveMeta Platforms
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.7T |
| Close on 10/27/2026 | 620.12 |
| Change that session | -1.66% |
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/27/2026 | 217.88 |
| Change that session | +0.87% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Nvidia Plays Kingmaker Again. Why the Meta Deal Is a Winning Move.
Nvidia will invest $3 billion in Meta's new equity offering, just days after Meta announced plans to raise $97.5 billion to fund its AI infrastructure build-out. The companies also expanded their partnership around the Muse family of models and Vera Rubin deployment, and Nvidia said the rapid growth of Meta's Muse personal AI agent drove the expanded collaboration. The article says Nvidia has built an AI network through stakes in Intel, SpaceX, CoreWeave, Nebius and OpenAI, including an agreement to invest up to $100 billion in OpenAI as it deploys at least 10 gigawatts of data centers. AMD has announced a $1 billion investment in Meta, but the author argues Nvidia's partnerships and technology will keep its lead hard to overcome.
- Meta's deal with AMD, Nvidia, Broadcom: Is circular financing a risk?
Madison and Speaker A discuss Meta's deal involving Broadcom, AMD and Nvidia, with Nvidia taking part in an equity issuance, and whether the circular nature of the financing is a concern. Madison notes that Mag 7 companies are mentioned throughout the S-1, and that circular funding has been common for these firms without causing major problems for investors before. The more interesting question is whether market patience is wearing thin for neocloud companies that need heavy funding to build infrastructure. Speaker A cites a Goldman report and Torsten Slok of Apollo saying AI spending will peak in the fourth quarter, along with Gartner's view that the downturn will be ugly when it comes, though not for everyone as large companies absorb smaller ones.
- Nvidia Stock Leads Search For AI Infrastructure Shares Tied To Meta
Nvidia is committing US$3 billion to Meta's large equity raise, and other chip suppliers are also lining up to buy Meta shares, linking the move to the AI infrastructure theme. The article highlights three stocks exposed to Meta's AI push: Cohu, a semiconductor test and inspection tool provider with about US$522.6 million in revenue and a US$2.3 billion market cap; AXT, a compound semiconductor substrate maker with about US$125.5 million in revenue and a US$3.3 billion market cap, described as holding a 40% share of indium phosphide substrates; and Synopsys, a chip design software and IP provider with a US$82.4 billion market cap. A broader screen found 13 more companies that are not covered in the article.
- Nvidia and Meta expand their AI partnership: What to know
Nvidia will invest $3 billion in Meta's equity offering, as Meta expanded its planned equity raise from 95 billion to 97 and a half billion. The common stock offering sold 25 billion, above the expected 22 and a half billion. The hosts note that although called a partnership, Nvidia is mostly selling chips to Meta, and the market may still read the deal as a bullish signal. They total recent financing deals, including a potential $100 billion Anthropic IPO, Meta's raise of roughly $100 billion, a $40 billion SpaceX GPU financing and a $63 billion Broadcom-Anthropic financing, at about $300 billion over 48 hours. They ask where the payoff for all this financing will come from.
- Meta announces plans to raise up to $95 billion for AI buildout
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.
- 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%.
Related markets
Latest news
- Anthropic IPO filing warns some risks may be uninsurable. AI coverage will be issue for every company
Anthropic's S-1 filing lists risks ranging from IP theft and security incidents to data loss, climate change and rogue agents, and warns its insurance may not provide sufficient coverage while the AI-specific insurance market is still nascent. Gartner's Alissa Lugo says 'death by AI' claims could exceed 2,000 worldwide by the end of 2026, and more companies are building in AI exclusions. Dennis Hendrickson of Hendrickson Insurance says cyber policies cover only some AI losses, and nearly every cyber policy excludes bodily injury. Kara Higginbotham of Zurich North America says a coverage gap generally exists for bodily or physical harm from AI incidents, as insurers are wary of writing such risks into policies today. Henrietta Akpata of Marist University says most companies cannot say where employees use AI tools, which is the first thing to fix.
- This Nvidia chart shows why the AI compute shortage remains acute
Demand for AI infrastructure remains strong, with rental rates for older-generation Nvidia (NVDA) Blackwell and Hopper GPUs still rising, a sign the compute shortage remains acute, according to BCA Research chief economist Peter Berezin. Berezin said he expects an AI capex bust, but probably not until 2028. SK Hynix (SKHY) plans to return a total of $75 billion to shareholders this year through buybacks and dividends, after record third-quarter revenue and operating profit for a sixth straight quarter. Anthropic's IPO prospectus showed first-half 2026 revenue rising to $16.3 billion from $1.1 billion a year earlier, with customers outside the top five making up about 79% of sales, up from 64% in the first quarter. The company had about $131.7 billion in cash, cash equivalents and short-term investments as of June 30, 2026.
- 3 signs the AI trade remains red hot
Yahoo Finance Executive Editor Brian Sozzi argues the AI trade is regaining momentum and cites three signs. First, rental prices for older Nvidia chips such as Blackwell and H100 (Hopper) are rising, based on a chart from Peter Berezin, chief economist at BCA Research, which Sozzi says contradicts reports of slowing AI demand. Second, SK Hynix posted a strong quarter and outlook and plans to return $75 billion to investors through buybacks and dividends. Third, Anthropic's latest IPO filing shows $131 billion in cash and equivalents and strong demand in the first six months of the year. Berezin reportedly takes a more cautious view and does not expect a capex bust until 2028, if it happens at all.
- South Korea fines Google, Apple for pushing app developers onto their payment systems
South Korea's Korea Media and Communications Commission (KMCC) fined Google 42.9 billion won (€28.7m) and Apple 20.8 billion won (€13.9m), a combined 63.7 billion won (€42.7m), after an investigation that began in August 2022. The regulator found both companies breached a 2021 law barring app store operators from requiring developers to use a specific payment system: they charged a 26% commission on alternative in-app payments, held back features, blocked payments through external websites and held up app reviews without clear explanations. Apple was also found to have charged South Korean developers more than elsewhere from 2015 to January 2023, because it calculated its commission on prices that included value-added tax. Both companies must let developers link to outside payment options and improve their app review processes, with one month to submit plans and three months to make the changes. Google and Apple had not publicly responded at the time of the report.
- Why Is Amazon.com (AMZN) Asking Investors To Watch Its $2 Billion AI Deal?
Amazon Web Services signed a US$2b multi-year AI infrastructure agreement with Verizon, covering large-scale agentic and generative AI systems built on Verizon's existing cloud relationship with AWS. Verizon plans to use the infrastructure for customer service agents, network operations and new data-intensive applications. The article says the deal fits the view that AI-driven AWS contracts must validate heavy data center and chip spending, but it also magnifies execution risk. The key test, it says, is whether Amazon discloses AI-specific revenue and contracted backlog within AWS in upcoming quarterly reports, which would show whether headline deal values turn into sustained cash generation.
- A group of shareholders holds over 8.6% of VIB's capital
Beston JSC spun off a company and transferred 85.73 million VIB shares to Bellmont JSC on 22/10/2026, reducing Beston's stake from 4.641% to 2.336% of capital. Bellmont, which held no VIB shares before, now owns 2.295%, and with related parties the Beston and Bellmont groups hold 236.86 million and 235.34 million shares. Including four related individuals, among them chairwoman Nguyen Thuy Nga, who is CEO and chairwoman of both firms, the group holds over 322.59 million shares, about 8.64% of VIB. VIB reported pre-tax profit of nearly 7,600 billion VND in the first nine months of 2026, up 8%.
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.