Meta's computing power "flips the table," is the golden age of AI chips about to hit the brakes?

Waking up to big news: Mark Zuckerberg announced that Meta will officially begin selling its own AI computing cloud services to external customers.

Once the news was released, the chip sector in the U.S. stock market immediately faced a fierce sell-off:

• Philadelphia Semiconductor Index: Plunged 6.27% in a single day
• Micron: Crashed 10.57%
• SanDisk: Crashed 10.62%
• Intel: Crashed 9.03%
• Corning: Crashed 13%

A computing power storm unleashed by Meta is dragging the entire AI hardware industry chain into a heated debate about the "ceiling of demand."

1. Meta's Pivot: From Big Spender to Water Seller

To understand why the market reacted so violently, we first need to look at what Meta has been doing over the past few years.

Over the last two years, Meta has been one of the most aggressive "buyers" in the AI arms race. It has been pouring $125 billion to $145 billion in capital expenditures annually,疯狂采购 GPUs, network equipment, optical modules, electricity, and cooling facilities—all for one purpose: to catch up with OpenAI and Anthropic in the race for large language models (LLMs).

The problem is, despite the massive spending, its models haven't delivered the expected results. Meta's own LLMs consistently lag behind its main competitors in performance, leaving a significant portion of its deployed computing power idle or operating inefficiently.

To put it vividly: This is an AI-era marathon. Meta was desperately trying to catch up on the track, only to find itself falling further behind the frontrunners. So, it sat down by the roadside and started selling water to the runners passing by.

The moment it sat down, it became a "computing power seller."

Specific figures better illustrate the scale of its assets:

• By the end of 2025, Meta's AI computing power was equivalent to about 2.5 million H100 GPUs, with a total power scale of approximately 2 GW.
• For 2026, Meta's capital expenditure guidance is $135 billion, corresponding to an additional ~2-3 GW of computing power.
• A simple calculation suggests that by the end of 2026, Meta's total available computing power could approach 5 GW.

What does this mean? It means Meta's AI computing capacity likely surpasses that of any tech company except the hyperscale cloud providers. And crucially, it doesn't need all of it for itself.

Therefore, the logic of renting out idle computing power makes sense—assets sitting idle are a waste. Monetizing them can at least improve the balance sheet.

2. Why the Chip Stock Decline? Two Market Narratives

Regarding Meta selling computing power, there are currently two different interpretations in the market.

Interpretation 1: Bearish – The "Computing Power Glut" Signal Has Been Fired

The bearish logic chain is straightforward:

Meta has been one of the largest buyers of AI chips over the past two years. Now that it's starting to rent out its excess capacity, it signals that even Meta doesn't need to buy more for itself.

If a player of Meta's caliber realizes they've "bought too much," what about other companies? Is the LLM arms race shifting from "all-out sprint" to "hitting the brakes"?

Further extrapolation suggests that once a consensus on "computing power glut" forms, expectations for demand growth in the entire AI hardware market will be significantly downgraded. Key players in the supply chain, like Samsung, TSMC, Micron, and Nvidia, could face slowing order growth or even order cuts. The high-flying hardware chain story of the past two years might start discounting.

Interpretation 2: Bullish – "Selling Water" to Continue the Marathon

The bullish counterargument is equally strong:

The hundreds of billions of dollars Meta spent on GPUs in the previous two years are sunk costs. Revitalizing and monetizing these idle assets isn't giving up on the race; it's a return to business rationality.

If renting out computing power proves profitable, Meta's confidence to subsequently purchase more GPUs, network equipment, and optical modules would actually increase. With a revenue-generating capability, the company can sustain its cash burn for longer. Spending money on equipment → renting out idle capacity to generate cash flow → using that cash flow to buy more equipment – this is a positive cycle, not a zero-sum game.

3. Who are the Winners? Capital's Answer is Clear

These two views are currently in intense conflict, and short-term volatility in chip stocks is likely to persist. However, one thing is certain: the capital market is rewarding Meta's decision to "sell water" with real money.

In the trading session following the announcement, Meta's own stock price did not crash alongside the chip stocks. Instead, it surged nearly 9%. This clearly shows investor sentiment: regardless of how chip stocks perform, this move is positive for Meta itself.

Why is that?

The core reason isn't "how much money renting out computing power can make." Because even if Meta rents out all its surplus capacity, the additional net profit generated in the short term is hard to determine. Perhaps it starts at a level of $2 billion to $3 billion – an insignificant figure for a company with annual revenues exceeding $100 billion.

What the market truly cares about is the shift in attitude.

In recent years, Wall Street's biggest anxiety about Meta wasn't its GPU purchases, but its "unlimited cash burn." Annual capital expenditures of $125 billion to $145 billion looked like a bottomless pit, raising increasing investor doubts about the return on investment (ROI).

Against this backdrop, Zuckerberg's willingness to monetize surplus capacity—even if the amount is small—signals something crucial: management is starting to care about capital efficiency. The "crazy cash burn" phase may be reaching a cyclical peak.

This is the signal Wall Street has been waiting for. So, even as chip stocks plummeted, Meta's own stock price surged against the trend. Capital is not rewarding the computing power rental business itself, but the strategic shift from "unlimited arms race" to "return to business rationality."

4. The Real "Black Swan" May Not Have Appeared Yet

Although chip stocks have suffered severe losses, it might be premature to declare the end of the AI hardware bull market.

Currently, the biggest uncertainty, beyond Meta's own move, is whether other giants will follow suit.

Meta is the first major tech company to publicly announce, "We bought too much computing power and need to rent it out." What about Microsoft and Amazon? If these cloud giants, which are also heavily investing in AI infrastructure, succumb to capital market pressure and announce "rational investments" or cut capital expenditure plans—that would be the moment that truly shakes the foundations of the entire AI hardware supply chain.

So far, Microsoft and Amazon have not released similar signals. However, if "cutting capex" becomes a collective action among tech giants in the coming weeks or months, the value of AI chip hardware will be reassessed.

In other words, the market is transitioning from one question to another: the problem isn't just Meta; the question is whether Meta is the first domino to fall.

5. Final Thoughts: Volatility is Certain, Direction is Not

For investors focused on chip stocks, the current situation can be summed up as: extremely high uncertainty, with increased short-term volatility.

What is the actual impact of Meta renting out computing power on chip demand? Is it an isolated event or the start of an industry trend? Will Microsoft and Amazon follow suit? These questions currently have no answers. Until answers emerge, stock prices in the chip sector are likely to remain volatile.

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The AI hardware story isn't over, but the script is being rewritten.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The market analysis and data presented are compiled from public information and may contain delays or inaccuracies. The U.S. stock market and chip sector involve high volatility risk; past performance does not guarantee future returns. The specific terms of related trading services are subject to the official explanations on the BIT platform, and users in different regions must independently confirm compliance. Investment involves risk; please consult a professional advisor and bear all associated risks and consequences before making decisions.