Investors flocked to AI-related names after Nvidia (NVDA) CEO Jensen Huang spoke at GTC 2026. At the game developer conference, Huang’s mention of DLSS 5, which arrives this fall, did not get much attention.
The bullishness for NVDA stock gave both Meta Platforms (META) and Nebius (NBIS) a solid boost. Those are today’s two hot stocks to watch. Meta announced that it would spend as much as $27 billion in the next five years on Nebius’s (NBIS) AI infrastructure.
META stock gained 2.33% on Monday, while NBIS stock added nearly 15%. In the five-year deal, Nebius will supply Meta with $12 billion of dedicated capacity, spread across multiple locations. The first deployment will use Nvidia’s Vera Rubin platform.
Nebius CEO Arkady Volozh said that the long-term capacity contracts would accelerate the buildout and growth of the company’s AI cloud business.
Unfortunately for Meta staff, the firm will reportedly 20% or more of its staff. The social networking giant needs to cut operating expenses to offset its purchases of AI-related hardware. Meta’s last big cut happened in 2022-23. Dubbed its “Year of Efficiency,” Meta cut over 20,000 positions. Before that happened, the firm doubled its staff count from 2020 22.
Risks on META Stock
Investors rewarded Meta for the staff cut by bidding the stock higher. However, its renewed spending on AI is risky. The company likely has a negative return on investment. This will not reach break-even for many years. Until Meta uses AI to create inexpensive content to drive user activity higher, the AI investment is far from risk-free.
