Meta announced a new business unit, Meta Compute, which will lease excess data center capacity to external clients, mirroring SpaceX's model. This admission of surplus capacity shattered the long-held investor assumption that AI compute demand always outstrips supply, triggering a broad sell-off in chip and cloud stocks. Micron fell over 10%, SanDisk, Intel, and AMD lost 6.9-10.6%, while Nvidia dipped only 1.25%. Neocloud providers CoreWeave and Nebius dropped 14% and 17% on fears of Meta undercutting their pricing. In contrast, other Magnificent 7 stocks like Apple, Microsoft, and Amazon rose, suggesting a rotation from hardware plays to other AI beneficiaries. The spillover extended to Asia, with Samsung and SK Hynix falling over 7% and 9% in early trading.

Key facts

• Meta announces Meta Compute unit to lease spare data center capacity.
• Chip stocks plunge; Micron down 10%, AMD, Intel fall 7-10%.
• Neocloud providers CoreWeave and Nebius drop 14-17% on pricing fears.
• Other Magnificent 7 stocks rise, signaling rotation from hardware plays.
• Asian chipmakers Samsung, SK Hynix fall 7-9% in early trading.