(Updates with close of trading session)

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Nvidia ( NVDA ) gains, will sell chips to Meta in multi-year deal

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Palo Alto Networks ( PANW ) drops after annual profit forecast cut

By Noel Randewich

Feb 18 (Reuters) - The S&P 500 ended higher on

Wednesday, lifted by gains in Nvidia ( NVDA ), Amazon ( AMZN ) and other

technology-related heavyweights following ​recent jitters about

artificial intelligence.

Nvidia ( NVDA ) climbed after the world's most ‌valuable company

said it had signed a multi-year deal to sell to Meta Platforms ( META )

millions of its current and future AI chips.

Sandisk ( SNDK ), Western ⁠Digital and Seagate

Technology Holdings ( STX ) climbed for much of the session,

adding to strong gains in ⁠recent months fueled by massive

AI-related demand for their storage technology.

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 ) and Microsoft ( MSFT ) ​rose on Wednesday.

"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 increased

after tumbling ⁠earlier this month. It was helped by advancing

Cadence Design Systems ( CDNS ) shares, after the chip-design

software provider beat fourth-quarter revenue estimates.

Palo Alto Networks ( PANW ) dropped after trimming its annual

profit forecast.

According to preliminary data, the S&P 500 gained

37.05 points, or 0.56%, to end at 6,880.27 points, while the

Nasdaq Composite gained 170.88 ⁠points, or ‌0.76%, to

22,749.27. The Dow Jones Industrial Average rose 123.44

points, or 0.25%, ‌to 49,656.63.

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 ) rose after the chipmaker forecast

second-quarter results above Wall ​Street estimates.

Global Payments ( GPN ) jumped after the payment technology firm

projected annual adjusted profit above expectations.

Moderna ( MRNA ) climbed after the U.S. Food and Drug

Administration agreed to review its influenza vaccine, reversing

an earlier decision rejecting ​the application.