Meta announced a stock offering plan to raise $95 billion to expand AI infrastructure

According to a Wall Street Journal (Wallstreetcn) report on October 25, 2026, AI-related trading sold off sharply over the previous week, with US equities and credit markets under pressure in tandem. The Nasdaq posted its worst single-day performance in months, while US high-yield bond risk premiums climbed to a 17-month high and CCC-rated junk bond yields rose to their highest level since 2020. Benchmark indexes appeared calm, but the repricing of risk in underlying assets accelerated.

One focus of market concern is the massive financing plan that Meta released after reporting its third-quarter results. According to a Barclays research report published on October 23, Meta chose to raise funds early partly because other companies in the AI ecosystem had already begun or were planning to begin financings, and the capacity of capital markets to absorb new issuance was becoming increasingly limited.

The report frames this as a prisoner's dilemma for AI giants: every company has an incentive to raise capital first, but if the major players all accelerate bond issuance, the added supply could push financing costs higher, in turn squeezing the funding room available to every participant. At the same time, hedge funds continued to cut leverage, and credit spreads on AI-related assets diverged further.

Goldman Sachs data showed that its long-short basket of AI beneficiaries versus risk stocks had dropped roughly 55% from its June peak, erasing the year's gains, with momentum strategies also suffering sharp drawdowns. The report notes that any recovery in AI trading depends not only on the earnings of the big tech firms but also on whether markets can absorb the heavy pipeline of bond supply and whether rising funding costs might hit the AI supply chain further. As of the report, the situation remains at the stage of pending financing plans and unresolved questions about debt supply absorption.