Meta Surges 10% on GPU Capacity Announcement, Triggers Sharp Selloff in AI Hardware Stocks on July 2

According to BlockBeats, on July 2, Meta surged approximately 10% on news it may release excess GPU capacity, sending shockwaves through the AI hardware sector. The announcement marked a significant shift in market narrative, with investors questioning whether artificial intelligence demand is as unlimited as previously assumed.

The market reacted sharply. BofA's Neocloud Basket declined noticeably, while storage and momentum stocks faced pressure, including Micron and SanDisk. Goldman Sachs' high-beta momentum basket fell around 9%, with paired long-short beta positions down roughly 10%, near their worst performance since early 2020.