Stocks Face Rising Risk With Mega AI Deals Ready to Flood Market

A flood of new shares from companies looking to fund their artificial intelligence ambitions is raising questions on Wall Street about whether there will be enough buyers to soak them all up and what this pile of fresh equity will mean for stock prices more broadly.

The risk hit home on Friday when a report that Meta Platforms Inc. is considering raising tens of billions in a stock offering sent its shares down 5.5%. The Nasdaq 100 Index tumbled 4.8%, its worst session in over a year, while the S&P 500 Index sank 2.6%, its weakest showing since October. ...