Meta expands AI capacity alongside Amazon's AWS strategy

Key Takeaways

• European markets, including the STOXX 600, CAC 40, and FTSE 100, reached new record highs, driven by strong earnings from luxury and industrial sectors, fueled by demand for AI and data centers.
• Bill Ackman's Pershing Square invested approximately $2 billion in Meta, believing the stock is undervalued despite concerns about its AI spending plans.
• Meta plans significant capital expenditures between $115 billion and $135 billion in 2026 to expand its AI capacity, focusing on AI-powered smart glasses and data centers.
• Amazon's AWS is central to its AI and cloud strategy, with the company announcing a substantial capital expenditure guidance of $200 billion for fiscal year 2026.
• GE Vernova's stock rose 5.3% on February 11, 2026, due to strong demand for its gas turbines, which are crucial for powering AI data centers, with its backlog growing to $150 billion.
• Vertiv Holdings Co stock surged 24% after reporting strong fourth-quarter earnings, driven by robust demand for its cooling and power management solutions essential for AI infrastructure.
• US stocks, including Apple, Amazon, Meta, Broadcom, and Palantir, declined amid growing concerns about the scale and returns of capital spending for AI computing infrastructure.
• Palantir's stock fell 6.18% after investor Michael Burry criticized the current AI investment cycle, though analysts at DA Davidson maintained a neutral stance, highlighting Palantir's AI Platform (AIP) value.
• Google announced a major upgrade to its Gemini 3 Deep Think AI model, capable of solving complex science, research, and engineering challenges, leading to a slight rise in Alphabet's stock.
• An EY survey indicates that nearly nine out of ten financial services CEOs expect strong growth in 2026, with AI initiatives already outperforming expectations and seen as fundamentally changing value creation.

European Markets Hit Record Highs Driven by Luxury and AI

European markets reached new record highs on Tuesday, boosted by strong earnings from luxury goods maker Hermès. Industrial companies also saw significant gains due to high demand for data centers and artificial intelligence. The STOXX 600 index, a key European stock benchmark, surpassed its previous record from January 2022. This positive trend highlights the region's growing economic strength and appeal to investors.

European Stocks Reach New Records on Strong Earnings

European shares extended gains to new record highs by early afternoon on Thursday, February 12, 2026. Strong corporate earnings from luxury and industrial groups fueled this broad rally. Hermès shares climbed after reporting better-than-expected quarterly sales, especially in the United States and Japan. Industrial companies like Legrand and Siemens also jumped due to demand for AI-driven automation and data centers. The pan-European STOXX 600, France's CAC 40, and London's FTSE 100 all neared or reached record levels.

Bill Ackman Invests $2 Billion in Meta's AI Future

Billionaire investor Bill Ackman's Pershing Square committed an estimated $2 billion to Meta, supporting Mark Zuckerberg's shift from the Metaverse to superintelligence. Pershing Square began buying Meta stock last November at an average price of $625 per share. Meta is focusing on AI-powered smart glasses and building data centers for artificial intelligence. While Meta's Reality Labs lost $83 billion since 2020, Ackman believes the stock is "deeply discounted." Pershing Square also holds stakes in Uber and Amazon and recently exited its position in Hilton.

Bill Ackman Bets Big on Meta's AI Potential

Billionaire investor Bill Ackman's Pershing Square Capital Management invested about $2 billion in Meta Platforms, representing 10% of its $20 billion portfolio. Ackman believes concerns about Meta's AI spending plans are overblown and that the stock is undervalued. He sees Meta's advertising business as a major beneficiary of AI integration, positioning it for long-term earnings growth. Meta plans significant capital expenditures between $115 billion and $135 billion in 2026 to expand its AI capacity. The stock has returned 450% since early 2023 and trades at less than 28 times earnings.

GE Vernova Stock Rises on Strong AI Demand

GE Vernova shares popped 5.3% today, February 11, 2026, driven by strong demand for AI infrastructure. The company's gas turbines are crucial for powering data centers, and its backlog is growing to $150 billion. Data center customers are even willing to pay upfront to secure future production slots for these turbines. Reports from other AI-related companies like Vertiv and Aehr Test Systems also showed excellent updates, signaling continued high demand for equipment that supports AI growth.

US Stocks Fall Amid Worries About AI Spending

US stocks dropped on Thursday as concerns grew about investments in artificial intelligence. The S&P 500 fell 1.5%, the Dow lost 1.3%, and the Nasdaq 100 plunged 2%. Volatility in AI-exposed industries reflected skepticism about the scale and returns of capital spending for computing infrastructure. Major tech companies like Apple, Amazon, Meta, Broadcom, and Palantir saw their shares decline. Cisco tumbled 12.3% due to weak guidance, while defensive shares like Walmart and McDonald's performed better.

Financial Leaders Expect Strong 2026 Growth Driven by AI

Financial services leaders anticipate strong growth in 2026, expecting improvements in revenue, profitability, and productivity. A new EY survey, released February 12, 2026, shows that nearly nine out of ten CEOs expect growth this year. Many CEOs report that their AI initiatives have already performed better than expected, and they believe AI will fundamentally change how their organizations create value. Leaders also prioritize ethical AI use and expect AI investments to support stable or higher staffing levels in 2026.

Vertiv Stock Jumps 24 Percent on Strong AI Demand

Vertiv Holdings Co stock surged 24% in premarket trading on Thursday after reporting strong fourth-quarter earnings. The data center solutions provider beat analyst expectations with earnings per share of $1.36 and matched revenue forecasts at $2.9 billion. This strong performance comes from robust demand for its cooling and power management solutions, which are critical for AI infrastructure. Vertiv also provided an optimistic forecast for the first quarter and the full year, expecting continued growth and profitability.

AWS Boosts Amazon's AI and Cloud Plans

Amazon Inc. is expanding its AI and cloud strategy, strongly supported by its Amazon Web Services (AWS) division. After its Q4 2025 results, UBS lowered Amazon's price target to $301 from $311 on February 6. Amazon announced a significant capital expenditure guidance of $200 billion for fiscal year 2026, which was much higher than market expectations. AWS provides essential infrastructure and services for developing and deploying artificial intelligence technologies. Analysts believe these substantial investments position Amazon well for long-term growth in the competitive cloud computing and AI markets.

Palantir Stock Falls After Michael Burry's AI Criticism

Palantir stock fell 6.18% after investor Michael Burry criticized the current artificial intelligence investment cycle in his newsletter. Burry, known for predicting the 2008 housing crash, raised concerns about data center depreciation and the valuation of AI companies. However, analysts at DA Davidson maintained their neutral stance on Palantir. They argued that Palantir's AI Platform (AIP) helps clients achieve real value from AI in critical systems. DA Davidson also questioned Burry's assessment, highlighting Palantir's fast growth and high cash flow margins.

AI Fears Hit Markets, Google Shows Strong AI Progress

US stocks fell on Thursday as fears about AI disrupting various industries grew. The Dow Jones Industrial Average, S&P 500, and Nasdaq all dropped more than 1%. Investors worried about AI's impact on sectors like software, financials, office real estate, and trucking. However, Alphabet's stock edged higher after Google announced a major upgrade to its Gemini 3 Deep Think AI model. This new version can solve complex science, research, and engineering challenges. Meanwhile, January existing home sales fell 8.4%, possibly due to unusually cold weather.

Sources

• Luxury and AI stocks drive European markets to record highs
• Luxury and AI stocks drive European markets to record highs
• Bill Ackman makes $2B gamble on Mark Zuckerberg's AI pivot with massive Meta stock purchase
• Billionaire Bill Ackman Just Invested 10% of Pershing Square Capital Management's $20 Billion Portfolio in 1 Unstoppable Artificial Intelligence (AI) Stock
• Here's Why GE Vernova Stock Popped Higher Today (Hint: It's Artificial Intelligence Related)
• US Stocks Drop on AI Concerns
• Financial services leaders see strong 2026 growth ahead as AI returns surprise on the upside
• Vertiv stock soars 24%. Earnings shake off concerns the AI trade is losing steam
• AWS Momentum Supports Amazon.com’s (AMZN) Expanding AI and Cloud Strategy
• Palantir stock drops after Michael Burry criticizes AI investment cycle, DA Davidson Defends Co. By Investing.com
• AI disruption fears slam new corners of the market, and Google reminds us why we own it