Meta’s $95 Billion AI Stock Sale Draws Nvidia, AMD
Meta’s bid to raise up to $95 billion for its AI buildout drew cornerstone interest from Nvidia and AMD, as investors also digest a volatile Brazilian election and gear up for this week’s Fed meeting.
Market Snapshot
All figures are indicative opening levels as of this morning, October 26.
Stocks opened the week lower after Friday’s selloff, with the Dow around 52,215.16, down 1.23 percent, the S&P 500 around 7,623.68, off 0.52 percent, and the Nasdaq near flat at 25,955.34, down 0.21 percent.
Gold firmed to around $4,030.80, up 0.57 percent, and silver held near $54.00, while oil slipped to around $101.20, down 2.00 percent.
The VIX eased to around 19.24 as investors looked ahead to Wednesday’s Fed decision.
Meta traded around $642.62, down 0.96 percent, as its new stock offering drew attention before any shares even priced.
CrowdStrike jumped to around $257.57, up 8.25 percent, on a fresh Nvidia security partnership and warnings of a coming wave of cyberattacks.
AT&T sank to around $20.93, down 7.96 percent, as last week’s earnings beat was overshadowed by rising leverage and competitive worries.
Main Story
Meta is trying to out-earn the AI spending fears that hit it last week.
- Meta plans to raise up to $95 billion for its AI buildout, starting with $35 billion in public equity and convertible preferred stock ahead of a $60 billion at-the-market program, with 2026 capital spending guided to $135 billion to $145 billion.
- Nvidia, AMD and Broadcom have each signaled interest in buying up to $5 billion of the offering as cornerstone investors, a sign of confidence that JPMorgan Asset Management says reflects winners outpacing losers, not the AI trade unraveling.
- The raise dilutes existing shareholders and locks in roughly $825 billion of future spending commitments, a bet that AI returns show up before that capital comes due.
Chart of the Day
NVDA trades around $213 this morning, up about 1 percent in premarket, after closing Friday at $210.96.
The stock remains in a technical downtrend, below both its 50-day moving average near $216.31 and its 200-day average near $226.12 after retreating from its October 6 high of $243.37.
Traders are watching whether this morning’s bounce, tied to the Meta news, breaks that slide.
Technical Trading
NVDA levels from Investing.com’s Monday technical summary:
- The 14-day RSI reads 34.16, approaching oversold territory after last week’s slide.
- MACD sits at negative 1.82, confirming the bearish setup, with the stock below both its 50-day ($216.31) and 200-day ($226.12) moving averages.
- Classic pivot support sits at $210.68 with resistance at $212.15, while the decline from the October 6 high is tracking as a five-wave move per Elliott Wave analysis from Worth Charting.
Global News
- Brazil’s Lula won a fourth presidential term over Bolsonaro, who is refusing to concede, rattling Brazilian equities including the iShares MSCI Brazil ETF.
- Trump said he is nearing a decision on whether to strike a deal with Iran or resume military action, as Gulf allies push diplomacy.
- Moody’s held France’s credit rating steady even as the country’s 10-year bond yield sits above 5 percent for the first time since 2002.
- The Federal Reserve’s two-day policy meeting begins Tuesday, with markets pricing roughly 85 percent odds of a hold on Wednesday.
Texas News
Bloomberg convenes exchanges, issuers, banks and investors in Dallas this week for Bloomberg Invest Dallas, built around whether Texas is a genuine second hub for US capital markets.
The event follows last month’s Dallas Fed data showing Texas shed nearly 19,000 jobs in September, its steepest drop since mid-2025.
Looking Ahead
Monday, October 26: The Dallas Fed’s Texas Manufacturing Outlook Survey is due later this morning, the first read on Texas factory activity since September’s sharp slowdown.
Tuesday, October 27: The Federal Reserve’s two-day policy meeting kicks off, with markets watching for any shift in tone ahead of Wednesday’s decision.
Wednesday, October 28: The Fed’s rate decision lands at 2pm ET, with futures pricing an 85 percent chance of a hold at 3.75 to 4.00 percent.
The Y’all Street Podcast
Evan talks with Wasif Latif, Co-Founder and CIO of Sarmaya Partners, about his “Return to Tangibles” thesis: markets shifting from tech and long-duration financial assets toward energy, metals, commodities, and infrastructure. They cover what’s changed since the 2008 financial crisis, and frame AI as much a physical infrastructure story (power, natural gas, copper, uranium) as a software one. Latif ties it back to how he’s positioning around that view through Sarmaya’s LENS ETF.
Prices from Yahoo Finance, CNBC and Fortune. Technical levels from Investing.com and FXStreet. News from Reuters, Al Jazeera and CNBC.
For informational purposes only. Not investment advice. Prices are indicative opening levels and may differ from your broker.
