The Nvidia-Meta deal is another indicator of the scale of capex already earmarked for 2026 by the so-called hyperscalers, as Meta plans to almost double its AI-related investment spending. The deal will also soothe some recent nerves around Nvidia's growing competition.
On the other hand, it also speaks to the intertwined nature of the AI leaders and just how narrowly concentrated all the frenetic activity is in a handful of stocks. Nvidia's last results showed 61% of its revenue jump came from just four customers. And in the background of all this is the creeping debt load in the sector.
Private capital firm Blue Owl Capital, whose shares have halved over the last year, said it was selling $1.4 billion in assets from three of its credit funds so it can return capital to investors and pay down debt.
And the equities mood seems to have shifted again, with S&P 500 futures back in the red ahead of today's bell.
Elsewhere, crude oil prices are building a head of steam, coming within a whisker of the year's highs after a more than 4% jump on Wednesday amid U.S.-Iran tensions and U.S.-mediated talks between Ukraine and Russia.
In Geneva, parallel talks on both fronts have been underway this week. Those between Ukraine and Russia ended on Wednesday without a concrete breakthrough. Meantime, despite some optimism around the U.S.-Iran standoff, both sides have since stepped up military activity and maneuvers.
Crude was also lifted by news that U.S. industrial production and manufacturing recorded the biggest monthly rise in almost a year in January.
Also irked by rising oil, U.S. Treasury yields crept back higher after the minutes of the Federal Reserve's latest meeting showed considerable resistance to further easing, as well as split views on the impact of the AI boom on productivity and inflation.
The dollar slipped back, meantime, but held above recent lows.
Later on Thursday, attention will switch to Walmart results, weekly jobless numbers and the Philadelphia Fed's latest business surveys.
