Nauman Khan
This article first appeared on GuruFocus.
Meta Platforms (NASDAQ:META) shares fell 1% in morning trading Monday after the company outlined plans to raise $95 billion through equity sales to finance its artificial intelligence infrastructure and superintelligence ambitions.
The fundraising would include $35 billion from underwritten public offerings and another $60 billion through an at-the-market share sale. Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD) and Broadcom (NASDAQ:AVGO) have expressed interest in purchasing up to $5 billion in shares, Meta said Monday.
The capital raise comes as Meta expands computing capacity for its apps, AI agent Muse and other services. The company is also building large data center facilities to support growing demand for AI computing.
Meta reported third-quarter revenue of $64.6 billion, up 26% from a year earlier and above analyst expectations. However, negative free cash flow and rising infrastructure costs have raised investor concerns. Meta now expects full-year capital expenditures of $135 billion to $145 billion.
The company plans to fund its expansion through operating cash flow, debt, partnerships and equity. Goldman Sachs estimates that global AI spending on computing, data centers and power could reach $7.6 trillion between 2026 and 2031.
