Meta Expands AMD AI Chip Deal; Markets Rally Ahead of Nvidia Earnings

A renewed AI-tech partnership and improving investor sentiment helped global equities stabilise on 24 February 2026, while energy markets remained sensitive to geopolitical risk. Major U.S. stock indices climbed, driven by a broader relief rally in software and AI-related shares as traders look ahead to Nvidia’s earnings release. Meanwhile, oil prices stayed elevated amid heightened tension around U.S.-Iran nuclear talks.

TL;DR

• AMD and Meta expanded their AI partnership to deploy up to 6 gigawatts of GPUs in data centres.

• US stocks rallied, with the S&P 500, Dow and Nasdaq rising ahead of Nvidia’s earnings.

• Morgan Stanley adjusted its Nvidia outlook before results.

• Oil prices remained elevated amid geopolitical tensions linked to US-Iran talks.

Key Developments

AMD and Meta deepen AI partnership

Advanced Micro Devices (AMD) and Meta Platforms agreed to enlarge their strategic collaboration, committing to the deployment of up to 6 gigawatts of AMD Instinct GPUs across Meta’s AI data centres in a multi-year, multi-generation framework. Initial shipments toward the first gigawatt are expected in the second half of 2026. The deal includes a performance-linked warrant enabling Meta to acquire up to 160 million AMD shares, reflecting confidence in shared AI infrastructure success and anticipated revenue growth.

U.S. equities rise on AI optimism ahead of Nvidia earnings

U.S. equity markets rebounded on Tuesday, with the Dow Jones Industrial Average and S&P 500 each rising about 0.8%, and the Nasdaq 100 gaining around 1%, as investors shrugged off a recent sell-off tied to AI disruption fears. Improved sentiment was supported by strong consumer confidence data and AMD’s AI chip deal with Meta, helping lift tech stocks.

Morgan Stanley also adjusted its forecast for Nvidia stock ahead of the company’s quarterly results, signalling continued Wall Street attention toward the AI semiconductor leader. (Source: APNews)

Oil markets on edge as geopolitical tensions persist

Crude oil prices remained elevated as markets priced in geopolitical risk ahead of U.S.-Iran nuclear talks scheduled for later this week. Geopolitical conflict fears,  rather than immediate supply constraints, have supported prices near multi-month highs, with Brent trading around $71,$72 per barrel and West Texas Intermediate near $66 per barrel. Analysts note that any escalation around the Strait of Hormuz or disruptions to Middle East flows could further tighten global supply.

Additional Context

Tech sector: AI demand and earnings expectations

AI hardware investments remain a core market theme. AMD’s expanded partnership with Meta highlights competition with Nvidia in large-scale GPU deployments, crucial for AI training and inference workloads. Nvidia itself is central to investor focus this week as its earnings could set the tone for broad AI sector sentiment. Prior to its report, several analysts and broker forecasts have shifted, reflecting evolving expectations for near-term revenues and valuation.

Equity market dynamics

Despite Tuesday’s rebound, markets have been volatile. A recent sharp sell-off earlier in the week was linked to broader worries over AI’s disruptive potential on legacy business models, particularly in software, and ongoing tariff uncertainty following recent U.S. trade policy changes.

Oil market fundamentals and risk

Although supply fundamentals still suggest a modest surplus in the longer term, short-term crude pricing is increasingly dictated by geopolitical risk premiums. The potential for conflict near key export chokepoints like the Strait of Hormuz underpins this dynamic, while traders maintain caution ahead of both diplomatic engagement outcomes and OPEC+ policy signals.

Conclusion

Tech and energy markets are navigating a complex macro backdrop where AI investment narratives, earnings catalysts, and geopolitical risks are intersecting with broader market sentiment. AMD’s landmark GPU deal with Meta and the upcoming Nvidia earnings release are key developments shaping investor positioning. Elevated crude oil prices amidst Middle East tensions add an additional layer of market risk, emphasising the need for active monitoring in both equities and commodities.

*Past performance does not reflect future results. The above is for marketing and general informational purposes only, and are only projections and should not be taken as investment research, investment advice or a personal recommendation.