Meta raised its full-year capital spending guide to $135 billion to $145 billion. At the same time, Nvidia CEO Jensen Huang called demand for AI computing infrastructure “off the charts.”
The demand is strong by Huang’s account. For Meta, the question is how much revenue its agents can produce against the cost of building and running them.
AI Demand Reaches Across the Buildout
Huang said the main challenge for neocloud companies is getting the working capital to build more computing capacity. Nebius secured a $3.5B credit facility from Citi and pointed to more than $40B in long-term contracts with investment-grade customers.
Reported growth reaches across the companies supplying the buildout. Broadcom’s AI semiconductor revenue rose 221% to $16.7B last quarter. It guided fourth-quarter AI revenue to $21.7B.
Cloud revenue grew too. AWS revenue rose 37% to $42.2B, with a $496B backlog. Google Cloud revenue rose 82% to $24.8B, with a $513.9B backlog.
The activity extends beyond chips and cloud services. Amkor signed a $1.5B advanced packaging agreement with Nvidia. Vistra signed 20-year nuclear power agreements with Meta covering 2,609 MW. IREN said it has a $9.7B five-year AI cloud contract with Microsoft.
These figures came from overlapping stock lists, so the lists are not separate confirmations. They do show why the spending question matters across chips, cloud services, packaging, power and financing.
Meta’s Spending Has a Revenue Question
One earnings commentator said Meta spent $83 billion in the first nine months and generated $96 billion in operating cash flow. After Meta’s results, free cash flow was reported to have turned negative. The cost of insuring its debt reached a record.
Meta has a new personal agent app with a free tier and subscriptions at $20 or $100 a month. Meta says the agent asks before sensitive actions. Users who do not want their interactions used to train its models have to opt out.
Meta is also exploring a cut of shopping transactions made through agents. The company says it has no concrete plan yet.
That leaves a gap between a clear spending figure and an agent revenue plan still taking shape. The app has paid tiers, but the script gives no figure for what those tiers or shopping transactions might earn.
Tech Shares Fell as Oil and Price Pressure Rose
The Nasdaq 100 fell 2.90%, wiping out nearly $1.2T in market value. The Philadelphia Semiconductor Index fell 6.7%. AMD lost 8%, Micron lost 6%, and Nvidia lost 4%.
The Dow and Russell 2000 gained in the same session. In Asia, Japan’s Nikkei 225 fell as much as 2%, and South Korea’s Kospi sank as much as 4%. The Financial Times also reported gains in Japanese bonds and the yen. Separately, it reported that America’s largest retirement fund for government workers is pivoting away from big US tech companies.
Oil passed $114 a barrel for the first time since May. S&P Global’s October flash Composite PMI was 57.6, while its output prices measure reached its highest level since August 2022. The University of Michigan’s consumer sentiment index was near 48.0, and one-year inflation expectations rose to 4.7%.
The Fed was widely expected to hold rates on Oct 28, with a December increase described as likely. President Trump urged a cut after a report showed 162,000 jobs added in August. CNBC reported that he also threatened to halt trade with top partners unless the Fed cuts rates. An interview with Fed Governor Christopher Waller supplied no policy position.
Oil and price pressure give the Fed something else to weigh alongside the jobs figure. France faced pressure too: its 10-year borrowing cost rose above 5% as investors sold its bonds. The Wall Street Journal reported a large budget deficit and political gridlock amid unrest over living costs.
Commentators offered different readings of the market. One calls AI a “mania or bubble” and questions the focus on chips, data centers and space while housing needs remain pressing. That commentator cites a 7.4% mortgage rate and says some homeowners do not want to give up 3% mortgages. Nvidia’s account of demand and the reported supply-chain growth give reason to question the bubble claim, though neither tells us what the spending will earn.
Another commentator warns of a rapid market “reset,” citing a Shiller CAPE ratio around 41 today against around 32.6 at the 1929 peak. The same commentator notes a counterpoint: margin debt is a little under 2% of market value today, versus almost 10% in 1929. A separate commentator argues that long-term yields, energy costs and weak housing affordability are straining the financial system. Those remain their warnings, not conclusions established by this selloff.
One commentator cites the past 19 midterm elections and says stocks were higher 12 months after each, though gains varied. Another expects a strong rally after the midterms but calls the next couple of weeks uncertain. A separate commentator believes AI stocks may be nearing the end of their selloff.
SpaceX’s Plans and Other Cash Decisions
Bloomberg reported that SpaceX is seeking access to at least 80,000 U.S. cell tower sites for its Starlink wireless plans. Semafor reported that SpaceX is finalizing a $40B debt package, with portions expected to carry rates around 8.3% and 7.75%.
SpaceX said a potential merger with Tesla would require Elon Musk’s approval, though he has recused himself from talks because of conflicts of interest. He publicly endorsed the potential $3.5 trillion deal. An earlier report said some insiders worried his comments could bring shareholder scrutiny and delay the process by several weeks.
Bloom Energy reported Q3 revenue of $1.24B, up 138% year over year, and raised its FY2026 revenue guidance to $4.4B to $4.6B. Quarterly operating cash flow was negative $27.1M. Sales grew quickly, but cash generation deserves attention too.
Fidelity said the average 401(k) balance rose 10.5% from March through June, helped by a strong stock market. Participants in their 30s averaged $75,200; those in their 40s averaged $156,800.