Meta on Monday launched around $35 billion in concurrent stock offerings to help finance its AI infrastructure and personal superintelligence investments.
- Meta said it intends to fund its AI expansion through a combination of operating cash flow, investment-grade debt, strategic partnerships and equity capital.
- The company expects capital expenditures to reach $135 billion to $145 billion in 2026.
- It said there is a separate $60 billion at-the-market stock offering program planned for 2027.
Meta Platforms (META) was in focus on Monday after the company announced $35 billion in concurrent stock offerings, with Nvidia (NVDA), Advanced Micro Devices (AMD) and Broadcom (AVGO) indicating interest in buying up to $5 billion of the company’s Class A shares.
META stock gained over 2% in pre-market trading and was the top-trending ticker on Stocktwits at the time of writing. Retail sentiment around the company continued to trend in ‘extremely bullish’ territory over the past day.
Meta’s financing plan includes a $22.5 billion offering of Class A common stock and around $12.5 billion in depositary shares representing mandatory convertible preferred stock. The company said it also plans to establish a separate $60 billion at-the-market (ATM) stock offering program in 2027.
Meta Taps Equity Markets To Fund AI Spending
While Nvidia, Broadcom and AMD have expressed interest in purchasing up to $5 billion of the common stock offering at the same price and on the same terms as other investors, the indications are nonbinding, and the companies could ultimately buy more, fewer or no shares.
NVDA stock rose around 1% in pre-market trade, amid the broader market rebound. AVGO and AMD shares also rose around 1% each.
Meta said the financing would support its continued investment in AI infrastructure and personal superintelligence. It expects capital expenditures of $135 billion to $145 billion in 2026 as it expands the computing capacity needed for its AI products and services.
The offerings form part of a broader plan to diversify funding for Meta’s AI investments. The company said it intends to use a mix of operating cash flow, investment-grade debt, strategic partnerships and equity capital.
It does not expect to receive initial proceeds from the sale of the $22.5 billion in Class A shares under the current offering. Instead, it expects to receive cash when it settles related forward sale agreements, which it intends to do before November 19 next year.
AI Investments Drive Infrastructure Expansion
Meta said its AI investments are already contributing to higher engagement, better advertising performance and improved monetization. The Facebook parent added that it’s also pursuing opportunities in personal AI assistants, business agents, enterprise products, and AI-enabled glasses.
Meta’s push comes as investors on Stocktwits debated whether such investments can generate returns and whether additional equity will dilute existing shareholders.
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META stock is down over 1% year-to-date and has fallen over 10% in the last 12 months.
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