US STOCKS-Wall Street climbs, lifted by Nvidia and other AI stocks

By Noel Randewich

Feb 18 (Reuters) - Wall Street indexes rose on Wednesday, lifted by gains in Nvidia, Amazon and other technology-related heavyweights following recent jitters about artificial intelligence.

Nvidia NVDA.O climbed 2% after the world's most valuable company said it had signed a multi-year deal to sell to Meta Platforms META.O millions of its current and future AI chips. Meta shares were nearly unchanged.

Sandisk SNDK.O, Western Digital WDC.O and Seagate Technology Holdings STX.O climbed between 2% and 6.2% each, adding to strong gains in recent months fueled by massive AI-related demand for their storage technology.

The PHLX chip index .SOX jumped 1.3%.

AI-related stocks lost ground earlier this month as investors worried about high valuations and how long it might take for AI investments to boost revenue growth.

Amazon AMZN.O on Wednesday rose 2.3% and Alphabet GOOGL.O added 0.7%.

"At a certain point, weakness in tech was bound to bring in the marginal buyer. These are still high-growth names. They were expensive and they've gotten cheaper," said Ross Mayfield, an investment strategy analyst at Baird in Louisville, Kentucky. "There are still a lot of people who want to be exposed to tech for the next several years."

Software makers also showed signs of recovery following recent worries that improved AI tools could lead to more competition and squeeze their profit margins.

The S&P 500 software and services sector .SPLRCIS, which tumbled earlier this month, rose 1.3%, helped by a 9% advance in Cadence Design Systems CDNS.O after the chip-design software provider beat fourth-quarter revenue estimates.

Palo Alto Networks PANW.O dropped 6.7% after trimming its annual profit forecast.

NASDAQ LEADS WAY HIGHER

The S&P 500 was up 0.61% at 6,885.10 points.

The Nasdaq gained 0.99% to 22,801.32 points, while the Dow Jones Industrial Average was up 0.27% at 49,668.06 points.

Six of the 11 S&P 500 sector indexes rose, led by energy .SPNY, up 1.61%, followed by a 1.27% gain in information technology .SPLRCT.

Federal Reserve officials were in nearly unanimous agreement to keep interest rates on hold at their meeting last month, but remained split over what might happen next, according to minutes of their January 27-28 meeting released on Wednesday.

Traders are pricing in a roughly 50% chance of a rate cut of at least 25 basis points by the Fed's June meeting, according to CME's FedWatch Tool.

Data released on Wednesday showed solid business spending and U.S. economic growth in the fourth quarter.

Analog Devices ADI.O rose 1.8% after the chipmaker forecast second-quarter results above Wall Street estimates.

Global Payments GPN.N jumped 15% after the payment technology firm projected annual adjusted profit above expectations.

Moderna MRNA.O climbed 5% after the U.S. Food and Drug Administration agreed to review its influenza vaccine, reversing an earlier decision rejecting the application.

Advancing issues outnumbered falling ones within the S&P 500 .AD.SPX by a 1.4-to-one ratio.

The S&P 500 posted 21 new highs and three new lows; the Nasdaq recorded 92 new highs and 96 new lows.