Meta Raises AI Capex Forecast, Shares Fall

Meta Platforms raised its 2026 capital expenditure forecast to $125 billion to $145 billion, up from a prior $115 billion to $135 billion, Reuters reported. The company reported first-quarter revenue of $56.31 billion, beating the LSEG-compiled analysts' average estimate of $55.45 billion, Reuters reported. Shares fell more than 6% in extended trading after the updated guidance and the company's regulatory warning, Reuters reported. Reuters also quoted the company saying, "We continue to see scrutiny on youth-related issues and have additional trials scheduled for this year in the U.S., which may ultimately result in a material loss."

Companies making comparable, large-scale infrastructure commitments typically drive stronger near-term demand for memory, GPUs, and data-center capacity, which can raise component prices and extend procurement lead times. Industry reporting and analyst commentary cited by Reuters links part of Meta's higher capex to pricier memory and broader AI infrastructure needs rather than a discrete change in long-term investment posture.

Reporting by Reuters places the capex increase alongside mounting legal and regulatory headwinds related to youth safety, including thousands of lawsuits and upcoming trials described in the coverage. Reuters also noted market commentary from Matt Britzman of Hargreaves Lansdown, who said the higher capital spending spooked investors but may reflect memory-price moves. The Financial-market reaction, a more than 6% drop in extended trading, reflects investor sensitivity to large, near-term cash outflows even when revenue beats expectations.

For observers and practitioners, monitor vendor lead times and pricing for high-bandwidth memory and datacenter GPUs, trending guidance on capital intensity from other hyperscalers, and court schedules and rulings tied to youth-related litigation noted in Reuters' coverage. Also watch subsequent earnings commentary for line-item detail on the composition of the capex increase (servers, networking, real estate, or chip purchases) and any regulatory filings or transcripts that expand on the company's quoted caution about trials and potential "material loss."