The Chip Companies Who Want in on Meta's Mega-Stock Sale

Dow Jones03:56

Meta already may already have some big buyers lined up for its mega-stock sale.

Three chip companies-Nvidia, AMD and Broadcom-have indicated interest in purchasing up to a combined $5 billion in the offering, Meta said.

Nvidia in particular has emerged as a key funder of the AI buildout, making large investments in customers such as OpenAI and CoreWeave, as well as rival chipmaker Intel. AMD and OpenAI also struck a deal last year, under which OpenAI agreed to buy AMD chips in exchange for stock warrants.

The increasingly intertwined finances of companies involved in the AI boom has raised concern among investors, who fear a retrenchment in AI spending could hit companies like Nvidia twice-with less revenue coming in and declining values for their equity investments in customers.

Meta shares approached the close with a 2% decline. Read more here.

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