AI Computing Stock Rout Over Meta Cloud Plans Called Market Misread

TLDR

• SemiAnalysis said the AI computing stock panic over Meta’s cloud plans was “erroneous.”
• The firm said Meta’s data centre and compute procurement would accelerate, not slow down.
• CoreWeave fell 14%, while Nebius dropped 17% after fears of excess AI hardware capacity.
• Micron, AMD, Intel, and SanDisk posted losses ranging from 4% to 14%.
• Samsung Electronics dropped 9%, while SK Hynix fell 14.6% amid the broader selloff.

Meta’s reported cloud plan triggered a sharp AI computing stock selloff, but SemiAnalysis rejected the capacity fears. Analysts said traders misread Meta’s strategy, and they expect spending to rise. The report said Meta still needs more compute power, not less.

SemiAnalysis Rejects AI Capacity Fears

SemiAnalysis called the AI computing stock panic “erroneous” after Thursday’s global chip rout. The firm said Meta would increase data centre spending. It also said Meta would keep buying compute capacity through partners.

“Meta’s data centre and compute procurement will accelerate, not slow down,” analysts said. They added that 2027 spending could look “shockingly high.” Therefore, SemiAnalysis said the selloff lacked support from Meta’s real plans.

The report also addressed fears about excess graphics processors. Analysts said Meta had signed nearly 10 gigawatts of deals since early 2024. They said third-party providers would still handle many capacity additions.

Cloud Stocks Fall After Meta Report

Bloomberg reported that Meta was planning a cloud service for AI computing power. The report sparked AI computing stock pressure across cloud providers. Traders feared Meta could rent unused chips into the market.

CoreWeave fell 14%, and Nebius dropped 17% on Thursday. Meanwhile, Micron, AMD, Intel, and SanDisk lost between 4% and 14%. The losses showed how fast the AI computing stock fear spread.

SemiAnalysis said the market misunderstood Meta’s possible cloud push. The firm described the plan as a high-margin opportunity. It also said cloud providers could gain from Meta’s growing obligations.

Asian Chipmakers Join The Selloff

The AI computing stock rout also hit Asian semiconductor shares. Samsung Electronics fell 9%, while SK Hynix dropped 14.6%. The moves reflected broader pressure across memory and chip supply chains.

Chinese chipmakers also declined after the Meta cloud rumour. SMIC and Hua Hong Semiconductor each fell around 10%. However, SemiAnalysis linked the reaction to fear rather than capacity evidence.

The firm said Meta could rent compute at premium prices. It also said Meta may host private model instances for business clients. As a result, analysts framed the AI computing stock panic as a market misread.

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