On Tuesday, February 17, 2026, Wall Street stock markets closed with small gains as investors weighed concerns about artificial intelligence spending against positive news from U.S.-Iran nuclear talks. Technology and semiconductor stocks recovered from earlier losses, while Federal Reserve officials Michael Barr and Mary Daly discussed AI's potential effects on jobs, adding to the ongoing market dialogue.
Globally, India is making a significant push into AI, expecting to attract $200 billion in investments over the next two years. This initiative includes building large-scale data centers powered by new nuclear power plants. This ambition aligns with the broader growth in the semiconductor market, which saw global sales hit a record $791.7 billion in 2025, a 25.6 percent increase from 2024, with projections suggesting the market could reach nearly $1 trillion in 2026.
In a notable shift, Nvidia recently adjusted its investment portfolio, selling its entire stakes in Arm Holdings, amounting to 1.1 million shares worth about $140 million, and also divesting from Applied Digital. Concurrently, Nvidia significantly increased its investment in Intel, now holding approximately 4 percent of the company, valued at nearly $8 billion. This move supports a collaboration where Intel will produce custom x86 CPUs for Nvidia's AI platforms.
Google's Gemini AI is generating market discussion, with concerns raised that it could take market share from OpenAI's ChatGPT. Additionally, Google's use of its own chips for Gemini might reduce demand for external chipmakers like Nvidia. Meanwhile, Mizuho upgraded Palantir stock to "outperform," setting a $195 price target, citing the company's strong growth and unique position to benefit from increasing AI demand. Synaptics also plays a role in AI-related human interface chips, with its Astra family of Edge AI processors developed with Google Research targeting future IoT applications.
New AI features are also emerging in the music sector. Google's Gemini AI assistant now generates 30-second music tracks, with or without lyrics, from user inputs, utilizing Google DeepMind's Lyria 3 model. Separately, Apple Music plans to introduce "Playlist Playground" through Apple Intelligence, allowing users to create playlists with cover art and 25 songs from text prompts.
Key Takeaways
- Wall Street saw small gains on February 17, 2026, amid AI spending concerns and positive U.S.-Iran nuclear talks.
- India plans to attract $200 billion in AI investments over two years, supported by new data centers powered by nuclear plants.
- Global semiconductor sales reached a record $791.7 billion in 2025, a 25.6% increase, with projections nearing $1 trillion in 2026.
- Nvidia sold its entire stakes in Arm Holdings (1.1 million shares, ~$140 million) and Applied Digital.
- Nvidia significantly increased its investment in Intel to ~4% (nearly $8 billion) for collaboration on custom x86 CPUs.
- Google's Gemini AI raises concerns about potentially taking market share from OpenAI's ChatGPT and reducing demand for external chipmakers by using its own chips.
- Mizuho upgraded Palantir stock to "outperform" with a $195 price target, citing strong AI demand and growth.
- Synaptics' Astra family of Edge AI processors, developed with Google Research, aims to be a key supplier for future IoT applications.
- Google's Gemini AI assistant now generates 30-second music tracks using DeepMind's Lyria 3 model.
- Apple Music will introduce "Playlist Playground" via Apple Intelligence for creating playlists from text prompts.
Wall Street sees small gains amid AI worries Iran talks
On Tuesday, February 17, 2026, Wall Street stock markets closed with small gains. Investors balanced concerns about artificial intelligence spending with positive news from U.S.-Iran nuclear talks. Technology and semiconductor stocks recovered, while transportation and airline shares like Norwegian Cruise Line and Southwest Airlines led the day. Federal Reserve officials Michael Barr and Mary Daly also discussed AI's effects on jobs.
Wall Street gains slightly amid AI worries and Iran talks
On Tuesday, February 17, Wall Street stocks ended with small gains. Investors considered ongoing concerns about artificial intelligence spending and its potential economic impact. They also reacted to positive news from nuclear talks between the United States and Iran. Technology and chip shares recovered from earlier losses as the trading day continued.
India plans $200 billion AI investment and nuclear power
India's government expects to attract $200 billion in artificial intelligence investments over the next two years. To support this growth, the country plans to build large-scale data centers. These data centers will be powered by new nuclear power plants.
Asian stocks gain as tech shares recover from AI concerns
Asian stocks rose on Wednesday, with technology shares in Japan leading the recovery from recent losses. Markets in China, South Korea, Hong Kong, and Singapore were closed for the Lunar New Year holiday. Japan's Nikkei index rose 1.1 percent, and the Topix added 1.4 percent, boosted by strong January trade data. Australia's ASX 200 also gained, while India's Nifty 50 saw little movement as local software companies like Infosys Ltd and Wipro Ltd faced challenges from AI developments.
Google Gemini raises concerns for AI market and chipmakers
Tom Essaye, president of the Sevens Report, highlighted three major concerns about Google's Gemini AI on Tuesday. First, Gemini could take market share from OpenAI's ChatGPT, impacting OpenAI's future. Second, Google used its own chips to build Gemini, which might reduce demand for chips from companies like Nvidia, Broadcom, and Taiwan Semi. Third, Gemini's cost-effectiveness makes investors question the value of huge AI infrastructure spending, fearing that AI could become a common product.
Nvidia sells Arm and Applied Digital to invest in Intel
Nvidia recently changed its investment portfolio, selling its entire stakes in Arm Holdings and Applied Digital. The company sold 1.1 million shares of Arm Holdings, worth about $140 million, after a failed acquisition attempt and new partnerships with Intel. Nvidia also took profits from Applied Digital, its best-performing stock in 2025, which had risen 238 percent. Instead, Nvidia significantly increased its investment in Intel, now holding about 4 percent of the company, valued at nearly $8 billion. This move supports a collaboration where Intel will make custom x86 CPUs for Nvidia's AI platforms.
Synaptics stock shows mixed results despite AI chip demand
Synaptics (SYNA) recently released its quarterly results and new guidance, showing its role in AI-related human interface chips. The company is still losing money, but its stock saw strong gains over the past year and 90 days, though it declined recently. Analysts believe Synaptics is undervalued, with a fair value around $91.82 compared to its current price of $85.40. Its Astra family of Edge AI processors, developed with Google Research, aims to be a key supplier for future IoT applications.
Mizuho upgrades Palantir stock due to strong AI demand
Mizuho upgraded Palantir (PLTR) stock to "outperform," stating that its recent 25 percent price drop this year is not fair. Analyst Gregg Moskowitz set a price target of $195, suggesting the stock could rise 47 percent. Moskowitz praised Palantir's strong growth, increasing profits, and unique position in the software market. He believes the company will benefit greatly from the growing demand for artificial intelligence, especially with its surging U.S. commercial business and strong government contracts.
Google Gemini and Apple Music launch new AI music tools
On February 18, 2026, Google and Apple introduced new AI features for music creation. Google's Gemini AI assistant can now generate 30-second music tracks, with or without lyrics, from user inputs like text or photos. This feature uses Google DeepMind's Lyria 3 model and is available in many languages for users over 18. Separately, Apple Music will soon offer "Playlist Playground" through Apple Intelligence, allowing users to create playlists with cover art and 25 songs from text prompts.
AI fuels record chip sales and future growth
The artificial intelligence revolution drove global semiconductor sales to a record $791.7 billion in 2025, a 25.6 percent increase from 2024. Logic chips, used in AI models and smartphones, led this growth with sales of $301.9 billion. The World Semiconductor Trade Statistics organization expects the market to reach nearly $1 trillion in 2026, with strong growth in memory and logic chips. Geopolitics, including US restrictions on chip sales to China and efforts to boost domestic production, continue to shape the industry.
Sources
- Wall Street Fluctuates as AI Concerns, Iran Talks Shape Tuesday Trading
- Trading Day: AI disruption, US-Iran nuclear talks, rate cut bets keep investors on their toes
- India's government is expecting $200 billion in AI investment in the next two years, with plans to build large-scale data centres and nuclear power plants to run them
- Asia stocks rise as tech recoups some AI-fueled losses By Investing.com
- 3 reasons why Google's Gemini could be the big bogeyman of AI trade
- Nvidia's "Secret Portfolio" Shakeup: 2 AI Darlings Are Ditched to Bet on Intel
- Synaptics (SYNA) Valuation Check After Earnings Beat And Growing AI Hardware Demand
- Mizuho upgrades Palantir, says AI demand makes recent sell-off ‘unjustifiable’
- Google Gemini, Apple Add Music-Focused Generative AI Features
- AI drives record chips sales in 2025
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