Steep bill for AI buildout punishes Meta, other tech favorites

Meta’s plan to raise funds for its AI buildout, including a new class of shares, helped trigger a broad selloff in AI-related stocks on Thursday. Reuters reports Meta dropped 8%, its biggest fall since July, after the hyperscaler said it would issue non-voting Class C shares. SpaceX fell 9% and Nvidia slid 4%, while the Nasdaq Composite was set for its largest decline in four months. Semiconductor weakness deepened after Lam Research sank 10%, sending the SOX index to its biggest drop since July. The pullback reflects investor concern that higher interest rates will force expensive stock issuance to fund uncertain long-term ROI.