TLDR
- Nvidia (NVDA) stock closed at $216.00 on Monday, up 2.39%, and was little changed before the open Tuesday.
- Nvidia will invest $3 billion in Meta Platforms’ (META) recent stock offering.
- Meta will expand its use of Nvidia hardware, including Vera Rubin and Vera CPUs, to power its AI agents.
- Meta upsized its common stock offering to $25 billion, and the total raise could reach $37.5 billion.
- Broadcom (AVGO) and AMD (AMD) have also shown interest in the offering.
Nvidia (NVDA) stock closed at $216.00 on Monday, up 2.39%. It traded near $215.95 in premarket action Tuesday, little changed.
The chip maker said late Monday it will put $3 billion into Meta Platforms’ (META) recent stock offering. Meta fell 1.88% on Monday and was flat before the open.
Nvidia has mostly backed smaller AI start-ups and hardware suppliers. This deal is different, since Meta is a large public customer that could likely raise the money on its own.
Still, there is logic to it. Meta’s Muse agent app became one of the most downloaded apps within a week of its launch.
Meta also builds custom chips with Broadcom. A stake gives Nvidia a closer tie to a customer that might lean harder on those chips over time.
What Meta Gets From the Deal
Meta will expand its use of Nvidia hardware in its data centers. That includes Vera Rubin and Vera CPUs to power its AI agents, plus Nvidia’s networking technology.
The two companies will work on training and inference performance for the Muse models. They are also considering other technology projects together.
“NVIDIA and Meta are expanding our partnership to optimize the computing infrastructure end to end for capable, efficient and secure AI agents,” CEO Jensen Huang said. That is a mouthful, but the message is clear.
Meta upsized its common stock offering to $25 billion from $22.5 billion. Paired with a depository offering, the total raise could reach $37.5 billion.
The common stock priced at $625 per share, and the depository offering priced at $50 per share. The money is aimed mainly at Meta’s AI infrastructure buildout.
Broadcom and AMD Want In
Nvidia will not be alone at the table. Meta has disclosed that Broadcom (AVGO) and AMD (AMD) both showed interest in joining the offering.
That rules out an exclusive deal like the one Nvidia has with Elon Musk’s SpaceX. Think of it as a crowded dinner party, with every chip supplier angling for a seat.
Broadcom CEO Hock Tan serves as a strategic advisor to Meta’s board. That gives Broadcom a direct line to Meta’s leadership.
Broadcom closed up 2.33% on Monday, and AMD finished 2.80% higher. Meta also said it plans a separate $60 billion non-voting stock offering in 2027.
In Tuesday premarket trading, Broadcom was up 1.2%, while Nvidia and Meta were little changed.
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