Meta shares plunge 8% after AI capital raise plans, Nasdaq drops
· Business · Economic Times, Reuters, Bloomberg
Meta Platforms fell 8% on Thursday, its largest drop since July, after announcing plans to issue a new class of shares to fund AI infrastructure. Nvidia dropped 4% and SpaceX declined 9% as investors sold off AI-linked tech following Meta's capital increase. The Nasdaq Composite was on track for its largest decline in four months, pressured by a 10% plunge in Lam Research shares. Tech firms have borrowed heavily over the past year for AI spending, but Wall Street now expects higher interest rates to force billions in stock sales, increasing share counts and weighing on prices. Eternal's Deepinder Goyal teased a new AI product, Dark.ai, while government plans for sovereign AI infrastructure with tighter GPU controls were reported.
Why it matters
Meta's share sale will dilute existing shareholders and increase the share count, putting direct pressure on Meta's stock price as the company raises billions for its AI data center buildout. Investors across the AI trade, including Nvidia and semiconductor firms, sold off as rising interest rates make equity financing more costly.
Read the original report — Economic Times
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