NEW YORK, Feb 18, 2026, 4:36 PM EST — Trading shifted into the after-hours session.
- Shares of Nvidia climbed roughly 1.5% in late trading after the company revealed a multiyear AI chip supply agreement with Meta.
- U.S. stocks edged higher, with big tech leading the charge following a dip in AI stocks sparked by concerns over valuations.
- Nvidia’s numbers are due Feb. 25, putting the spotlight squarely on whether all this AI investment is actually driving visible revenue growth.
Nvidia (NVDA.O) climbed roughly 1.5% to $187.98 in late Wednesday trading, after announcing a multiyear agreement to supply Meta Platforms (META.O) with millions of AI chips. Ian Buck, who heads Nvidia’s hyperscale division, described the company’s Grace chips as “an excellent data center-only CPU” designed for demanding back-end tasks. Reuters
This mattered—AI trades have been looking shaky this month, as investors weigh how soon hefty outlays will actually turn into earnings. “Weakness in tech was bound to bring in the marginal buyer,” said Ross Mayfield, investment strategy analyst at Baird. The latest dip left some fast-growth stocks looking more affordable. Reuters
U.S. equities closed in the green. Investors rotated back into big tech after a turbulent stretch weighed on some AI-focused stocks. The S&P 500 climbed 0.56% to 6,880.27. Nasdaq tacked on 0.76%.
Meta climbed roughly 0.6% to $643.22. Microsoft (MSFT.O) picked up 0.7%, landing at $399.60. Amazon.com (AMZN.O) advanced 1.8%, closing at $204.79.
Advanced Micro Devices (AMD.O) lost nearly 1.5%, landing at $200.12. Intel (INTC.O) dropped roughly 1.6% to $45.46. Investors took a cautious stance, trying to read the implications of Meta’s expanded commitment for other players in the space.
AI-driven demand for data center storage pushed some of the sector’s biggest names higher. Western Digital (WDC.O) rose roughly 4.4% to $296.56. Seagate (STX.O) was also on the move, tacking on around 1.9% to close at $424.14, building on its recent rally.
Software names drew buyers looking for deals after the sector’s recent tumble, sparked by worries that emerging AI products might eat into established players’ turf. Cadence Design Systems (CDNS.O) jumped 7.6% to $305.01. Not everyone rallied—Palo Alto Networks (PANW.O) slid 6.8% to $152.35 after trimming its profit outlook for the year.
Outside the U.S., Microsoft announced Wednesday plans to pour $50 billion into boosting AI access in the “Global South”—the company’s label for developing and emerging markets—by the decade’s end. Reuters
Traders kept a close eye on rate outlook after the Federal Reserve published minutes from its late-January meeting, underscoring that officials remain unconvinced inflation is moving decisively toward their target. Federalreserve
The bear scenario isn’t hard to imagine. Should customers pull back on spending, or if major buyers continue moving workloads onto their own silicon, the market may start treating “AI demand” as a narrative with a slower payoff again.
Nvidia’s up next, with quarterly earnings due after the bell on Feb. 25—an announcement traders are watching closely, likely to ripple across AI chip names and much of tech in the days that follow. Nvidia
