Meta and Nvidia Announce Massive AI Chip Deal, Boosting Stock Futures

2026-02-18 economy

New York, Wednesday, 18 February 2026.
Meta’s agreement to deploy millions of Nvidia chips sparked a tech rally, pushing futures higher as investors await economic signals from today’s Federal Reserve minutes.

Tech Sector Rallies on Strategic AI Partnership

US equity futures signaled a positive opening on Wednesday morning, with the Nasdaq 100 leading the charge following a significant announcement from Meta Platforms (META) regarding its artificial intelligence infrastructure. Meta revealed a multiyear, multigenerational partnership with Nvidia (NVDA) to deploy millions of AI chips, a move that immediately reinvigorated investor sentiment toward the technology sector [2][6]. Following the announcement, Nvidia shares climbed 2% in premarket trading [3]. This development comes as a reprieve after the stock market rally stumbled earlier in the week, with the major averages posting only slim gains on Tuesday [2][3]. While the tech sector surges, the broader market remains in a holding pattern ahead of the Federal Reserve’s meeting minutes, which are scheduled for release later today [1][3].

Inside the Meta-Nvidia Deal

The collaboration between the two tech giants represents a massive scaling of AI hardware. On February 17, 2026, Nvidia confirmed that Meta plans to integrate Nvidia’s Blackwell and forthcoming Rubin AI chips, alongside Grace and Vera central processors, into its data centers [6]. This infrastructure build-out is designed to support Meta’s personalized recommendation systems and generative AI capabilities for billions of users [8]. Jensen Huang, founder and CEO of Nvidia, noted that the partnership involves deep co-design across CPUs, GPUs, networking, and software to build the foundation for the “next AI frontier” [4]. The agreement also includes the adoption of the Nvidia Spectrum-X Ethernet networking platform and Confidential Computing technologies, specifically to enhance privacy for WhatsApp messaging [4][8]. Reports indicate that this deal solidifies Meta’s position as one of Nvidia’s top customers; in its most recent fiscal quarter, Nvidia is believed to have generated 61% of its revenue from just four massive clients [6].

Market Movers and Divergent Trends

The ripple effects of the Meta-Nvidia alliance were felt immediately across the semiconductor landscape. While Nvidia stock gained, rivals such as Advanced Micro Devices (AMD) and Broadcom (AVGO) faced downward pressure in early trading [2]. In separate corporate maneuvers, Nvidia disclosed in an SEC filing on February 17 that it had offloaded 1.1 million shares of Arm Holdings, valued at $155.8 million [3]. Beyond the chip sector, Amazon (AMZN) shares rose over 1.6% after regulatory filings revealed that Bill Ackman’s Pershing Square increased its stake in the company by 65% during the fourth quarter of 2025 [3]. Conversely, the cybersecurity sector faced headwinds; Palo Alto Networks shares sank 8% after the company issued third-quarter guidance that missed analyst expectations, despite beating fiscal second-quarter earnings estimates [3].

Economic Outlook: Fed Minutes and Inflation Data

While corporate earnings and partnerships dominate the morning headlines, the macroeconomic focus for Wednesday, February 18, 2026, centers on the Federal Reserve. Investors are awaiting the minutes from the central bank’s January policy meeting to gauge the trajectory of interest rates for the remainder of the year [1][3]. The market is currently navigating a “semi-holding pattern” as traders also look ahead to the release of the personal consumption expenditures (PCE) price index—the Fed’s preferred inflation gauge—due on Friday, February 20 [3]. Market strategists suggest that while the AI trade has become more complex to navigate, the technology sector remains robust, having risen approximately 20% over the last four months [3]. The release of today’s minutes will be critical in determining whether the current optimism in equities can be sustained against the backdrop of lingering inflation concerns.

Sources

Artificial Intelligence Market Futures