Meta just bought millions of NVIDIA chips 🤖

Welcome back to the the Day Trading newsletter 📈 

Tech found its footing yesterday as the Meta-NVIDIA mega-deal restored some AI optimism, but the Fed minutes reminded everyone that rate cuts are far from guaranteed.

Meanwhile oil is spiking on US-Iran tensions and Walmart just reported this morning.

Lots to unpack, let’s get into it 👇️ 

🏦 Fed minutes from January's meeting revealed deep divisions among policymakers. Some officials want to leave the door open for rate hikes if inflation stays sticky, while others are pushing for more cuts. No rush to restart easing after last month's pause, with PCE data due Friday (Reuters)

💵 Berkshire Hathaway sold nearly all of its Amazon and Apple stakes in Warren Buffett's final quarter as CEO. The Oracle of Omaha is sitting on a record cash pile as he prepares to hand the reins to Greg Abel (Investopedia)

🛢️ Oil surged 4.5% to $65.10 a barrel after the U.S. and Iran increased military activity near the Strait of Hormuz. A sustained move higher could reignite inflation fears right as the Fed debates its next move (Benzinga)

🔻 Walmart beat on Q4 revenue with holiday sales up nearly 6%, but its full-year earnings guidance of $2.75 to $2.85 per share fell short of the $2.96 Wall Street expected. Higher-income shoppers continue driving the retailer's market share gains (CNBC)

💰️ Robinhood launched a $1 billion closed-end fund giving retail investors access to SpaceX, Stripe, and Databricks ahead of potential IPOs. The timing isn't subtle — SpaceX's public debut could raise up to $50 billion (Benzinga)

📉 Bitcoin ETFs have hemorrhaged $8.5 billion in outflows since October while BTC sits more than 50% below its all-time high. Wall Street's institutional embrace is now cutting both ways as traditional risk-off flows drag crypto lower (Bloomberg)

📈 Gold jumped 2% to nearly $5,000 an ounce on Wednesday as safe-haven demand surged amid geopolitical tensions and Fed uncertainty. The metal is up over 25% since early 2025 and keeps flirting with that psychological $5,000 milestone (Bloomberg)

Meta announced a multi-year infrastructure partnership with NVIDIA to deploy "millions" of Blackwell and next-generation Rubin GPUs across its hyperscale data centers.

The deal also includes NVIDIA's CPUs (a direct shot at Intel and AMD) signaling that Meta is going all-in on a single AI silicon provider.

In January, Meta said it could spend up to $135 billion on AI this year, and chip analyst Ben Bajarin of Creative Strategies called this deal alone "certainly in the tens of billions of dollars."

The timing matters. Amazon just got punished for its own $200 billion capex plan, losing $450 billion in market value over nine days.

But instead of scaring Meta off, the deal doubled down on the thesis that AI infrastructure spending isn't slowing, it's accelerating.

NVIDIA shares rose 1.6% on the news, and the broader AI supply chain rallied with it.

Big Tech collectively plans to spend over $700 billion on AI capex this year, and NVIDIA remains the biggest beneficiary.

The question is whether the revenue to justify all that spending actually shows up.

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⚠️ Disclaimer: Not financial advice. Do your research before making any trades.