New York, Feb 18, 2026, 07:06 EST — Premarket
- Amazon shares picked up roughly 1.5% in premarket action, adding to Tuesday’s bounce.
- Nvidia’s chip supply agreement with Meta gave tech stocks a jolt, pushing sentiment higher in the sector ahead of the Fed minutes.
- Amazon’s 2026 spending plans remain under scrutiny from investors, who are parsing what the numbers could spell for cash flow.
Amazon.com picked up 1.5% before the open Wednesday, the stock pushing higher after recent choppy trading fueled by jitters about Big Tech’s AI spending.
This shift lands at a tricky spot—investors are juggling two big questions. Can rate-cut wagers stick after the Fed’s recent signals? And has the surge in AI infrastructure spending tipped into overbuild territory instead of true expansion?
Nvidia jumped after news broke of its multiyear pact to provide Meta Platforms with millions of AI chips, giving tech shares a jolt in early trading and bringing a steadier tone to the sector.
Amazon finished Tuesday at $201.15, gaining 1.19%, having bounced between $196 and a high of $201.74 during the session.
Behind the scenes, the latest 13F disclosures are turning up signs that major funds have been dialing back on AI-related stocks heading into late 2025. Tiger Global, for instance, slashed stakes in Amazon and other heavyweight tech names. But another round of filings reveals D.E. Shaw moving in the opposite direction, buying more Amazon shares.
What’s really hanging over Amazon is its aggressive approach to capital expenditures—think data centers, chips, logistics hardware. The company has mapped out a $200 billion capex plan for 2026. “Amazon has to invest at these levels just to stay in the race,” said D.A. Davidson’s Gil Luria. Reuters
Some on Wall Street are calling the hyperscalers’ spending surge a “red flag,” raising concerns that if revenue doesn’t ramp up soon, those big numbers could start pressuring free cash flow. Fortune
Macro remains a key factor. The Fed’s January meeting minutes land at 2 p.m. EST, with investors poring over the details to gauge just how tough it will be for rate cuts to materialize after policymakers left rates anchored between 3.5% and 3.75%.
Friday brings the U.S. personal income and outlays numbers, with a close watch on the PCE price index—the inflation measure the Fed favors. The Bureau of Economic Analysis has its next PCE update set for Feb. 20.
But there’s risk on the table. A hawkish tilt in the Fed minutes or hotter-than-expected inflation data could send high-valuation tech tumbling—Amazon’s spending narrative might not stay “investment” for long; it could turn into a “drag” in a hurry.
Looking ahead, Nvidia’s earnings—set for Feb. 25—will be in focus, with investors scanning for any signs about AI demand that could shake up the supply chain and feed directly into the capex questions still dogging Amazon’s stock.
