U.S. chip stocks rebound as Meta plans to double GW capacity, China semis rally

U.S. semiconductor equities bounced sharply after Meta disclosed plans to double its gigawatt-scale data center capacity, adding to a broader risk-on session that also saw Chinese semiconductor names rally. Meta — which posted $201B in FY revenue (+22% YoY) and a 30.1% net margin — is signaling it intends to keep its AI infrastructure buildout at an aggressive pace, well beyond what most sell-side models had assumed even at the start of 2025.

The direct spend beneficiaries are the usual hyperscaler supply chain: Nvidia (GPUs and networking), AMD (GPU and CPU), Marvell and Broadband for custom silicon and interconnects, and TSMC as the foundry behind nearly all of it. Broader memory names — Micron, SK Hynix — also stand to gain from HBM demand tied to a larger GPU install base.

The China semis rally adds a second, independent leg to the session move. Whether driven by domestic policy support, short covering, or read-through from easing geopolitical noise, a sustained China semi bid would widen the total addressable market conversation and reduce the binary risk that has weighed on names like ASML and KLA.

The tension for chip bulls is valuation: most large-cap semis are not cheap after the 2023-2024 re-rating, and Meta's capex plans are already partially in sell-side models. The question is whether the magnitude of the doubling is genuinely above consensus or just confirms the known trajectory. What to watch: Nvidia's next data point (any supply commentary), Meta's formal capex guidance at its next earnings, and whether the China rally sustains or fades on follow-through volume.