Meta plans to sell excess AI computing capacity to customers

Meta announced on 1 July 2026 that it plans to build a cloud business, selling spare AI computing power to outside customers. The company's shares rose around 8% after the news, but stocks in the chip and AI infrastructure sector fell sharply. Nvidia, AMD, Broadcom, and several other hardware companies all lost value. Memory, networking, and chip equipment firms also saw declines. The Nasdaq Composite dropped roughly 0.33%. Investors grew worried that too much AI computing capacity had been built across the industry, and that demand was not growing fast enough to match it. This concern could put pressure on profits for chip makers and infrastructure providers. Shares of Amazon, Microsoft, and Alphabet stayed mostly positive despite the broader weakness in the sector.