Meta Platforms Inc(NASDAQ:META) just suffered its fourth straight losing month, slipping 1.6% in November and leaving investors wondering if the AI trade has run out of steam. But beneath the red ink sits a narrative the bulls won’t shut up about: Meta’s stock is falling because its AI ambition is exploding.
Meta is still up more than 9% over the past year, but the stock remains well below its 52-week high of $796 after months of relentless selling pressure.
Sentiment is strained as Meta pushes capital spending to a massive $70 billion to $72 billion for 2025, an almost surreal jump from its 2024 outlay. Bears say the AI bill is spiraling. Bulls say the selloff is a temporary tantrum — the future is being built under everyone’s nose.
Even from a chart perspective, Meta just printed a massive hammer-style monthly candle after dropping to November lows — historically a reversal setup that signals aggressive dip-buying. And with META never having logged five straight red months in its 13.5-year history, bulls say the technical backdrop is quietly setting the stage for a sentiment snapback.
The most interesting pressure point in the AI market isn’t performance — it’s supply.
Nvidia Corp(NASDAQ:NVDA) controls as much as 80% to 95% of the global AI accelerator market, but Meta is openly exploring a multiyear deal that would see it rent Alphabet Inc‘s (NASDAQ:GOOG) (NASDAQ:GOOG) Google TPUs in 2026 and run them inside Meta data centers in 2027.
Even a partial migration matters when a single hyperscaler can account for a mid-teens share of Nvidia’s demand, and reports suggest the shift could shave up to 10% off Nvidia’s annual sales. Wall Street is already reacting: Nvidia has shed more than $700 billion in value from its peak, while Alphabet climbs closer to a $4 trillion market cap as investors start pricing TPU revenue like a real business.
Why META Bulls Don’t Mind The Pain
Yes, Meta is bleeding stock price momentum — but its business is strengthening its AI spine while competitors argue about margins. If Meta succeeds in broadening the chip supply chain, it won’t just lower dependency risk — it may fundamentally reshape power inside the AI economy.
The stock chart looks rough. But the strategy looks like a setup. If Meta’s AI engine hits full stride in 2026-2027, this stretch of red may age like the 2022 panic bottom — painful in real time, legendary in hindsight.
