Meta rebounds as $613 move gains traction on renewed AI chip deal optimism

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Highlights

- Meta rises toward $613 as Google chip talks lift sentiment.

- Buyers defend the $580–$600 zone after November’s sharp slide.

- Stock remains capped under key EMAs despite the rebound.

The development arrives as demand for Nvidia’s hardware remains elevated and supply remains tight, prompting major technology firms to secure alternative compute capacity. The potential arrangement helped stabilize Meta after its sharp November slump. The stock had dropped almost 25 percent from its highs, driven by a breakdown below its long-standing trendline and a broad rotation out of megacap technology. The prospect of diversified AI infrastructure spending, however, offered a catalyst for buyers after several weeks of heavy pressure.

Technical pressure eases as Meta defends $600 region

The chart shows Meta attempting to build a base after breaking below its long-term ascending trendline earlier this month. That breakdown sparked a wave of forced selling, taking the stock from above $750 to the $580 area. The loss of the 20-, 50- and 100-day EMAs intensified the decline, with these averages now sitting at $630, $673 and $688, forming a firm overhead cluster.

Meta stock price dynamics (Source: TradingView)

The rebound over the past two sessions highlights strong demand between $580 and $600. This zone previously acted as a consolidation band during the summer and has become a key structural support. The stock has held above $600 since Monday, a sign that capitulation has eased and short-term sentiment is improving.

Momentum shows early stabilization. RSI has climbed from 27 to 37 after touching extreme oversold territory, signaling that sellers are losing control. While still below the midline, the indicator’s upward slope suggests the pressure is shifting. A move through 45 would be the first confirmation that trend stability is returning.

Next resistance levels define the recovery path

Meta now faces its first test at the 20-day EMA near $630. A close above that threshold would open the door to the heavier resistance band between $670 and $690, where the 50-day and 100-day EMAs align with the former trendline. That area is likely to attract profit-taking as it overlaps with the region where the previous breakdown began.

If the stock fails to clear $630, the risk grows for a return to the $580 support. A breakdown below $580 would expose $550, which represents the base of Meta’s nine-month uptrend and the final major support before a deeper shift in structure.

The broader backdrop continues to revolve around AI infrastructure spending. Meta’s interest in Google’s TPUs underscores the intensifying race to secure compute power as next-generation model training accelerates. While the potential deal remains unverified and long-dated, investor reaction reflects sensitivity to any signals that Meta is broadening its supply chain beyond Nvidia. At the same time, the company’s large-scale infrastructure commitments raise questions about near-term capital intensity and margin impact.

In earlier coverage, we noted that Meta’s sharp November decline marked its most aggressive technical reset of the year, driven by a clean violation of its long-term trendline. The latest rebound aligns with that earlier analysis, which highlighted $580 to $600 as the most important accumulation zone for any sustainable recovery attempt.

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