Meta shares plunge on rising concerns over AI spending spree
Meta Platforms Inc. shares plunged after the company raised its spending outlook for the year, citing investments in AI infrastructure. The company's projected full-year capital expenditures of $125 billion to $145 billion exceeded analysts' estimates.
Meta Platforms Inc. shares dropped by as much as 10% after the company raised its full-year capital expenditures to $125 billion to $145 billion, exceeding analysts' estimates. The increase is driven by investments in AI infrastructure, including deals with Nvidia Corp., Advanced Micro Devices Inc., and Broadcom Inc. Meta is building massive data centers to power its AI efforts. The company reported $56.3 billion in first-quarter sales, beating Wall Street's estimate. Meta's CFO, Susan Li, cited 'higher component pricing' and additional data center costs as factors in the increased spending. Meta is set to kick off a $20 billion to $25 billion bond sale.
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