Meta Launches $35B Stock Sale, Nvidia and AMD Eye $5B

Meta (META) launched $35B of stock offerings and plans a $60B at-the-market program in 2027 to fund AI, with Nvidia, AMD and Broadcom eyeing up to $5B.

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What Did Meta Announce?

Meta announced two offerings that run at the same time, totaling about $35 billion. The first is $22.5 billion of Class A common stock. The second is about $12.5 billion of depositary shares that represent mandatory convertible preferred stock. Each depositary share is a one-twentieth interest in a $1,000 preferred share. The preferred converts into common stock around Aug. 15, 2029. Its dividend rate and conversion terms are set at pricing.

The common stock is being sold through forward sale agreements arranged with Morgan Stanley (MS) and Goldman Sachs (GS). Meta does not receive initial proceeds from that portion. It receives cash when it settles the forwards, which it intends to do before Nov. 19, 2027.

The planned at-the-market program is a separate $60 billion facility. It would let Meta sell shares gradually into the market from 2027, with timing and terms still undecided. Together the programs equal roughly 5.8% of Meta's market value of about $1.64 trillion.

Why Is Meta Selling Stock to Fund AI Spending?

Meta is selling stock because its AI infrastructure costs are outrunning what it wants to fund from internal cash and debt. The company has guided to capital expenditures of $135 billion to $145 billion in 2026. The money goes to data centers, servers and networking for its AI products and its "personal superintelligence" effort.

Meta spent heavily on share repurchases earlier in the decade, so the move marks a clear change in capital allocation. It now raises equity for compute instead of returning cash to shareholders. Existing holders face dilution. CEO Mark Zuckerberg's voting control is expected to stay largely intact because of Meta's dual-class structure.

Why Are Nvidia, AMD and Broadcom Interested?

The three chipmakers are interested because Meta is one of their largest customers for AI accelerators and custom chips. Buying the stock would put part of Meta's spending back into the equity of the company that places the orders. The indications are nonbinding, and any of the three could buy more, less or none of the stock.

That raises a circularity question, since supplier investment in a customer can support the demand that lifts supplier revenue. The size is modest next to the offering. The $5 billion ceiling is about 14% of the $35 billion launched and about 5% of the $95 billion plan.

How Did Nasdaq Meta Shares React?

The broader tape was firm. The Nasdaq rose as technology stocks rebounded on AI optimism, so the Meta drop stood out against the market.

Strategic Context

The deal is the latest sign that AI spending is moving beyond what the largest technology companies can comfortably fund from operating cash flow alone. Investors who want exposure to AI stocks now have to weigh heavy capital intensity against growth. Equity issuance on this scale by a company valued above $1.5 trillion is unusual.

For suppliers, the sale confirms that Meta's capex plans are funded well into 2027. That supports order visibility for GPU, accelerator and networking vendors.

Outlook

Pricing of the $35 billion offerings is the next step. Meta then needs to settle the forward sale agreements before Nov. 19, 2027 and decide the terms of the $60 billion at-the-market program. Whether Nvidia, AMD and Broadcom commit to the shares will show how far chipmakers are willing to finance their own demand. Meta's dilution, its capex path and the return on its AI investment will shape how the market values the stock.