Power Equipment Stocks Fall as Meta’s AI Spending Plan Raises Financing Questions
GE Vernova fell 11%, Vertiv dropped 7%, and Eaton slid 6% after Meta’s expanded AI infrastructure outlook raised concerns about how the spending will be funded. Meta beat revenue expectations but reported negative free cash flow and created non-voting shares to broaden funding sources. The selloff hit suppliers tied to data-center power and cooling equipment, with GE Vernova’s large backlog and upcoming results in focus.
Meta’s October 21 report beat revenue forecasts, but its higher AI infrastructure budget and continued heavy spending beyond 2026 left quarterly free cash flow negative. The company also set up non-voting shares to widen possible funding channels, though CFO Susan Li said no specific financing plan was ready.
The selloff spread across power and grid suppliers: GE Vernova fell to $826.01, Vertiv to $196.42 and Eaton to $369.80, while a grid-infrastructure fund lost 4% and the S&P 500 tracker slipped 1.43%. GE Vernova’s $176 billion backlog and more than $5 billion of year-to-date data-center orders, over twice its 2025 total, remain central to the outlook.
If AI infrastructure financing slows, equipment makers, their workers, and communities tied to data-center construction could feel delayed orders and weaker investment. Utilities and grid operators may face uncertainty over demand forecasts, while investors in power and cooling suppliers could see sharper volatility. Broader electricity users might eventually be affected if project timing shifts costs or capacity planning, though the direction and scale remain unclear.