The Exchange (CNBC) – “Not Nvidia, Mamdani’s Property Tax Plan, and Zuckerberg Takes the Stand”

Date: February 18, 2026
Host: Kelly Evans

Episode Overview

This episode of CNBC’s “The Exchange” offers a fast-paced rundown of critical market dynamics and breaking stories:

• The unique position of Nvidia in a shifting tech landscape
• Investor sentiment moving toward physical assets and away from Big Tech
• NYC’s potential 10% property tax hike and its impact on commercial and residential real estate
• Mark Zuckerberg’s testimony in a landmark trial about Meta’s responsibility for teens’ mental health
• Sector rotations across the stock market and how investors should respond

1. Market Update & Nvidia’s Position Ahead of Earnings

([00:29]–[08:55])

Key Points

• Stocks open with positive momentum: Nasdaq up 1.3%, S&P 0.8%, Dow 0.6%, with Nvidia and Amazon leading the gains.
• Nvidia’s stock up 2% ahead of its earnings report; Morgan Stanley notes mega-cap techs are least owned in 17 years.
• Wells Fargo’s Aaron Rakers asserts Nvidia is undervalued by historical standards and well-positioned for near-term growth.

Discussion Highlights

• Robust demand for AI and server infrastructure:
  • “You look at some of the export data out of Taiwan, 200% growth in server exports… Bloom Energy, Vertiv, Eaton all pointing to this robust investment cycle.” — Aaron Rakers ([02:45])
• Investor concerns about Nvidia’s size:
  • “Sometimes I just look at the sheer size and think, how much bigger can it really get?” — Kelly Evans ([03:27])
• Limits due to index weighting:
  • Rakers: “It’s touched roughly 8% of the S&P 500… kind of where we saw Apple hit a threshold that kind of deterred some of the movement higher.” ([03:53])
• Potential competitive threats:
  • Nvidia seen as retaining an “extreme co-design platform breadth” that makes it hard to displace, though custom solutions from the likes of Google and Broadcom are noted.
• Key upcoming metrics:
  • “Investors are sensitive to gross margin… the ability to keep that 70+% gross margin is important. The other big metric would be the $500 billion order backlog they’ve talked about.” — Rakers ([08:07])

Quotes

• “Nvidia is trading at over a 40% discount to where it’s traded these last three years… we think sets up for a very positive risk/reward into next week’s print.” — Aaron Rakers ([02:45])
• “The next phase of AI is really driving token unit economics… it’s hard to believe that Nvidia wouldn’t continue to be that dominant provider of that compute infrastructure.” — Rakers ([07:00])

Timestamps

• Nvidia’s position: [00:29]–[08:55]

2. Retail Investor Behavior & Asset Rotation

([08:55]–[14:52])

Key Points

• Robinhood data: Retail investors are selling Nvidia and Tesla (locking in profits) and buying “underdogs” like Amazon and Microsoft after recent drops.
• Retail buyers attracted to physical commodities: Surge in interest for gold and silver, driven by demand for physically-backed, tangible assets.
• ETF buying has slowed; stock picking is up among retail traders due to AI-induced uncertainty.
• Bitcoin and Crypto: Lower prices have dampened “allure” for some retail traders, but recurring investment strategies continue among the crypto-faithful.

Quotes

• “Our customers… really capitalize on weakness. We’ve had this rolling AI scare… I think they think some of that may be overblown.” — Steve Cork, Robinhood ([09:31])
• “There’s a safety in the physicality of these things… it provides you a little bit more safety than an individual name.” — Cork ([12:25])
• “Bitcoin… Such price sensitivity. They just lose a lot of the allure for many retail customers.” — Cork ([13:47])

Timestamps

• Retail behavior & asset rotation: [08:55]–[14:52]

3. The NYC Property Tax Hike Proposal: Real Estate Reaction

([16:33]–[23:08])

Key Points

• NYC Mayor Mamdani floats a 10% property tax increase as leverage to get state-level income tax hikes for the wealthy.
• Tony Malkin, CEO of Empire State Realty Trust, shares an upbeat view on NYC commercial real estate:
  • “Flight to quality, top of tier. We did over a million square feet of leasing in 2025.” ([17:39])
• NYC’s commercial office market has strong demand, even as other U.S. markets struggle with oversupply.
• Malkin is more concerned about global risks (“potential war with Iran”) than immediate tax hikes.

Discussion Highlights

• Impact of the tax increase: Would pass through to tenants (via leases), but ultimately “the impact on residents is quite high.”
• AI and office demand:
  • “Estimates of over a million and a half square feet of demand in New York City for office space from new AI entrants.” ([21:22])
• Balancing optimism with caution on policy shocks and macro risks.

Quotes

• “In some way [Mamdani]’d be passing through an increased cost and burden on those tenants… The impact on the residents is quite high, [but] fiscal discipline… logically comes into play.” — Tony Malkin ([20:35])
• “I’m more concerned about the fact that we may be at war in Iran in two weeks than I am right now about real estate tax increases.” — Malkin ([21:08])
• “The biggest thing for us is how do we use [AI] and demand from our people to be more efficient… overall, the AI piece… should increase productivity and create more business.” — Malkin ([21:22])

Timestamps

• Real estate/taxes: [16:33]–[23:08]

4. Mark Zuckerberg Testifies in LA Social Media Trial

([24:32]–[32:30])

Key Points

• Mark Zuckerberg testifies in a landmark LA trial on whether Meta’s (Instagram) product design is addictive and responsible for harming children and teens.
• Key legal focus: Liability not for user content (protected by Section 230), but for how the platform is built to encourage engagement and potentially harmful behavior.
• Zuckerberg’s admissions:
  • Enforcement of age limits is “hard.”
  • Acknowledges his irremovability as CEO (“I can’t be removed as CEO because I control the voting shares.”) ([25:03])
• Emotional atmosphere: Bereaved parents in attendance; media focus on impact stories.

Analysis by Alex Kantrowitz (Big Technology)

• Major risk if Meta is forced to alter algorithms or design across the U.S.:
  • “If there are structural changes… that would be massive and fairly unprecedented in U.S. history.” ([27:28])
• Effects unlikely to be limited to California; settlements by Snap and TikTok underscore the stakes.
• More lawsuits ahead:
  • “There are hundreds more along these lines that will be coming now. This is the landmark case because it’s the first and there’s going to be precedent.” — Kantrowitz ([28:56])
• Public sentiment sharply negative:
  • “71% of people surveyed… said social media should be banned for kids 16 and younger.” ([32:20])

Quotes

• “The jury is basically going to decide whether Instagram and whether YouTube ruins a very young girl’s life… These emotional conversations are really going to impact the jury.” — Kantrowitz ([29:51])

Timestamps

• Zuckerberg on stand: [24:32]–[32:30]

5. Sector Rotation and the “Old Economy” Rebound

([36:17]–[42:31])

Key Points

• Stock market’s sector rotation: Tech no longer the only growth engine; “boring” sectors (materials, industrials, staples, energy) are leading.
• Nvidia’s valuation is now lower (forward PE of 26) than Walmart’s.
• Mark Dizard (Huntington Bank CIO): Sees opportunities in tech, despite “indiscriminate selling,” and warns against overreacting to short-term sector trends.
• Balance between old economy (Caterpillar, materials) and enduring tech growth.

Quotes

• “This sector rotation... is actually quite healthy and we think it’s really positive. But don’t move all your money. You could get whipsawed.” — Mark Dizard ([37:12])
• “Some companies that grow at 3 to 4% are trading at much higher valuations than companies expected to grow at double digit earnings growth. That’s a really powerful thing.” — Dizard ([38:02])
• “We would certainly be owners [of Amazon and Microsoft] here… we still think they’re attractive.” — Dizard ([42:16])

Timestamps

• Sector rotation: [36:17]–[42:31]

6. Company Spotlight: La-Z-Boy Amid Consumer Uncertainty

([43:40]–[46:47])

Key Points

• La-Z-Boy beats earnings expectations but warns of consumer caution and tough housing affordability.
• CEO Melinda Whittington describes consumer sentiment as “challenged but steady,” with both large-project buyers and more strapped value-seekers in the market.
• Use of AI:
  • Efficiency through analytics, employee management, and consumer engagement.
  • Growing importance in adapting to changing shopping behaviors.

Quotes

• “We’re expecting a consumer for the foreseeable future that looks a lot like it has for the last several quarters… everyone’s looking for that inflection point.” — Melinda Whittington ([43:52])
• “I really think about AI in three buckets: efficiency… managing through cyber risk… staying ahead of agentic commerce.” ([45:28])

Timestamps

• La-Z-Boy: [43:40]–[46:47]

7. Notable Moments & Quotes

• On Nvidia’s staying power:
  “The extreme co-design platform breadth of Nvidia is hard to refute… that competitive moat will continue to deepen and make it the dominant play on this infrastructure buildup.” — Aaron Rakers ([05:20])

• On the broader market sentiment:
  “Sometimes you just need to sit and create a foundation for the next leg up.” — Steve Cork, Robinhood ([12:25])

• On NYC property taxes:
  “You can’t give an F [on the bond auction]. The Treasury will make sure some primary dealer does something to avoid the really ugly outcome.” — Rick Santelli ([36:20])

• On the tech trial’s long-term impact:
  “They could have put walls up ahead of time, but they didn’t. And that’s why they’re in the position today.” — Alex Kantrowitz ([31:12])

8. Segment Timestamps Reference

• Nvidia & AI Market: [00:29]–[08:55]
• Retail Behavior & Risk Sentiment: [08:55]–[14:52]
• Real Estate & NYC Taxes: [16:33]–[23:08]
• Zuckerberg on Trial: [24:32]–[32:30]
• Market Rotation Discussion: [36:17]–[42:31]
• La-Z-Boy & Consumer: [43:40]–[46:47]

Summary Takeaways

For Investors:

• Despite sector churn, durable tech names (and Nvidia’s moat) remain compelling, even at lower index weights.
• Retail investors are shifting portfolios toward harder assets and beaten-down Big Tech stalwarts.
• Caution is advised against overreacting to market rotations; a diversified mix is recommended.

For Policy & Business Watchers:

• New York’s property tax debate is far from settled, and commercial landlords are concerned but see robust demand.
• The LA social media trial has broad ramifications beyond Meta, setting new legal precedent for product design liability.

For Businesses:

• AI adoption is increasingly table stakes for efficiency, risk management, and customer engagement — across sectors from real estate to retail.

Notable, in-their-own-words episode closer:
“Sometimes you just need to sit and create a foundation for the next leg up.” — Steve Cork, Robinhood ([12:25])