Meta Nvidia AI Deal Puts Valuation And Capex In Investor Focus

Simply Wall St

Wed, February 18, 2026 at 3:09 PM GMT+9 3 min read

In this article:

•                                       StockStory Top Pick 
  

  META

  -0.08%

  NVDA

  +1.20%

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Meta Platforms (NasdaqGS:META) and Nvidia announced a multiyear, multigenerational partnership to build and accelerate Meta's AI infrastructure at global scale.

The agreement includes millions of Nvidia chips for Meta's hyperscale data centers and the rollout of Nvidia Confidential Computing across services such as WhatsApp.

The collaboration involves deep codesign between Meta and Nvidia engineering teams to support next generation AI workloads and user facing experiences.

Meta Platforms, trading at about $639.29, has seen a very large 3 year return and a 143.6% gain over 5 years, even with a 1 year return of an 8.9% decline. Over the shorter term, the stock shows a 3.1% gain over 30 days and a 4.4% decline over the past week, with year to date performance at a 1.7% decline. This new AI infrastructure agreement arrives against that mixed return profile and represents a development for investors to track.

For shareholders and potential investors, the scale of this deal highlights how central AI infrastructure and privacy focused compute have become to Meta’s product roadmap and cost base. The rollout of Nvidia Confidential Computing across platforms such as WhatsApp also brings technical data protection choices to the forefront as AI features expand to billions of users.

Stay updated on the most important news stories for Meta Platforms by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Meta Platforms.

NasdaqGS:META Earnings & Revenue Growth as at Feb 2026

3 things going right for Meta Platforms that this headline doesn’t cover.

Quick Assessment

**✅ Price vs Analyst Target**: At US$639.29, Meta Platforms trades about 26% below the US$860.42 analyst price target range midpoint.

**✅ Simply Wall St Valuation**: The shares are described as trading 40.6% below estimated fair value, which screens as undervalued.

**✅ Recent Momentum**: A 30 day return of about 3.1% shows positive short term price momentum.

There is only one way to know the right time to buy, sell or hold Meta Platforms: head to Simply Wall St’s company report for the latest analysis of Meta Platforms’s fair value.

Key Considerations

📊 This AI infrastructure deal locks Meta in with millions of Nvidia chips and reinforces AI as a core driver of future product and cost decisions.

📊 Watch AI capex levels, data center efficiency, and adoption of new AI features across WhatsApp and other apps as this partnership scales.

⚠️ Reliance on Nvidia hardware and confidential computing tools concentrates supplier and execution risk around one key technology partner.

 






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Dig Deeper

For the full picture, including more risks and rewards, check out the complete Meta Platforms analysis. Alternatively, you can visit the community page for Meta Platforms to see how other investors believe this latest news will impact the company’s narrative.

_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include META.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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