Meta begins selling surplus computing power—if computing power is already oversupplied, will these big tech companies’ capital expenditures still keep growing at a high rate? If capital expenditure starts hitting a peak, will the AI industry chain downstream still command such high premiums? Tonight, the stock price is trying to figure this out.
The market’s reaction tonight
- META +10.8% (around 563–624; the news directly catalyzed it) MSFT +3.2%, GOOGL +1.0%, AMZN +1.8%.
But memory chips across the board fell sharply: Micron (MU) -8.4%, SanDisk -6.7%, Intel (INTC) -7.6%, SNDK -10.5%, Western Digital (WDC) -7.3%.
Money isn’t flowing indiscriminately back into all big tech—it’s flowing to “platforms” that can monetize compute assets and have pricing power (Meta/Microsoft/Google). Meanwhile, pure “shovel sellers” like Nvidia and Broadcom—and memory chips that had surged due to scarcity—are instead under pressure.
The core logic behind the spike in memory chips this quarter is “bottleneck-driven scarcity.” This Meta news is effectively telling the market, “even big players themselves find compute oversupplied and are selling it out.” That directly undermines the scarcity narrative, so funds turned around overnight.
So tonight, the market’s money is starting to show “capital expenditure peak” anxiety.
The market’s reaction tonight
- META +10.8% (around 563–624; the news directly catalyzed it) MSFT +3.2%, GOOGL +1.0%, AMZN +1.8%.
But memory chips across the board fell sharply: Micron (MU) -8.4%, SanDisk -6.7%, Intel (INTC) -7.6%, SNDK -10.5%, Western Digital (WDC) -7.3%.
Money isn’t flowing indiscriminately back into all big tech—it’s flowing to “platforms” that can monetize compute assets and have pricing power (Meta/Microsoft/Google). Meanwhile, pure “shovel sellers” like Nvidia and Broadcom—and memory chips that had surged due to scarcity—are instead under pressure.
The core logic behind the spike in memory chips this quarter is “bottleneck-driven scarcity.” This Meta news is effectively telling the market, “even big players themselves find compute oversupplied and are selling it out.” That directly undermines the scarcity narrative, so funds turned around overnight.
So tonight, the market’s money is starting to show “capital expenditure peak” anxiety.