Nvidia tumbles despite Meta’s surprisingly huge AI spending plans

Meta is the best-performing member of the Magnificent 7 on Friday after CEO Mark Zuckerberg said the social media giant’s capital spending could reach $65 billion this year. That’s more than 20% above what Wall Street had been anticipating.

But Nvidia — the company one would expect to be basking in the glow of these higher-than-expected outlays — is down 3% on the day.

Of course, this might just be some consolidation for Nvidia and its peers after the VanEck Semiconductor ETF was up double digits already in 2025 heading into today’s session. The ETF, which recently broke out of a monthslong trading range, is down nearly 2% on Friday. Earnings reports from SK Hynix and Texas Instruments continue to underscore a deep divide in chips, with robust demand for AI-linked purposes and softness in other business lines.

However, Broadcom, perhaps Nvidia’s biggest rival and a trillion-dollar company in its own right, is one of the few chip stocks managing to buck the downdraft in the industry on Friday with a solid gain.

Analysts seem to be of the mind that Zuckerberg’s announcement is good for both trillion-dollar chip companies, making this discordant price action noteworthy.

“Meta hiking capital spending to $60-$65 billion in fiscal 2025, compared with consensus of $51.3 billion, adds confidence to Nvidia’s near- to medium-term growth projections,” Bloomberg Intelligence analysts Kunjan Sobhani and Oscar Hernandez Tejada wrote. “As a top Nvidia customer, Meta’s deployment of full-stack systems dominates these outlays. The increase could also support Broadcom, Meta’s ASIC developer, as spending picks up on AI infrastructure.”