Meta’s plan to monetize surplus AI capacity sends shares of Nvidia, AMD, and other chipmakers lower while boosting its own stock.
Meta announced plans to build a cloud business selling excess AI compute capacity, triggering a sell-off in AI-related stocks. Nvidia fell $3.54 (-1.77%), while AMD and Micron dropped 3.45% and 6.3%, respectively.
The move undercuts established cloud providers and chipmakers reliant on AI infrastructure demand. Prior sessions showed resilience in AI stocks, with Nvidia and AMD trading near record highs before the announcement.
Meta shares rose $36 (6.36%) on the news, outpacing broader market declines in the sector.