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Luke Kawa

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.”

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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