tech
February 18, 2026
Meta deal for millions of Nvidia chips is big
Money has been leaving Nvidia and going to other parts of the AI chip complex in recent months.
TL;DR
- Meta Platforms plans to spend billions on Nvidia chips, potentially revitalizing Nvidia's stock.
- Investor focus had recently shifted to memory and storage chips, with competition from Google's in-house AI chips also raising concerns.
- Nvidia's technology advantages and central role in AI buildout are re-emphasized by Meta's commitment.
- Shares of Nvidia saw a modest rise following the news, outperforming the S&P 500 on Wednesday.
- In 2026, Nvidia's stock performance had lagged behind other chip sectors like memory and storage (Sandisk, Western Digital, Micron) and even alternatives like AMD.
- Google's AI advancements with its custom Tensor Processing Units (TPUs) had also created competitive concerns for Nvidia.
- Meta's commitment includes not only GPUs but also standalone CPUs and networking technology from Nvidia.
- Meta's CEO Mark Zuckerberg understands the 'total cost of ownership' of Nvidia's technology, a perspective not always shared by traders.
- Jim Cramer's Charitable Trust holds long positions in Nvidia, Alphabet (Google), Broadcom, and Meta.
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