RB Markets · The desk · Tuesday 27 October 2026

Meta fell on its record equity raise while chipmakers pledging to buy in rose

Meta Platforms closed down 1.64% at $620.19 on Tuesday, a day after launching its first stock sale since 2013. Reuters reported that the company lifted the raise to $97.5 billion, its largest ever, to fund AI expansion. The broader market rose, with the Nasdaq Composite up 1.18% and the S&P 500 up 0.60%.

The suppliers went the other way. AMD closed up 5.45% and Broadcom up 4.00%. Nvidia, which has committed $3 billion to the offering according to Yahoo Finance, gained 0.90%. The chipmakers have signaled interest in up to $5 billion of shares combined. Those indications are nonbinding, meaning none of them is obliged to buy, 24/7 Wall St. notes.

The session counted the orders. A supplier that buys its customer's stock helps pay for its own hardware, and on Tuesday the sellers of compute were the ones that gained. The platform buying the compute paid instead. What the price left off was the return. Meta expects $135 billion to $145 billion of capital spending this year. Its third-quarter free cash flow, the cash left after that spending, was negative $2.12 billion. New shareholders are now funding that gap.

The desk ruled The CapEx Returns Gap confirmed. Vendor-Guaranteed Demand stays blank: with the Nasdaq up 1.18%, the suppliers' gains cannot be tied to the Meta stakes alone. The tape will watch Meta's forward sales, shares sold now and delivered later, which can settle through November 2027.

Sources

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