Tech Focus - February 03, 2026 (EOD)

 ## Tech Sector Wrap The tech sector experienced a turbulent session today, driven largely by significant sell-offs in software stocks amidst concerns over AI-related growth prospects. The overall sentiment shifted as investors rotated into more stable consumer staples, reflecting worries about the sustainability of growth in high-valuation tech names. Notably, the Nasdaq Composite fell sharply, losing 1.4%, as major tech stocks grappled with mixed earnings reports and shifting market dynamics. Particular focus was drawn to the performance of the Magnificent 7, with stocks like **$AAPL** and **$MSFT** facing pressure despite positive earnings. The broader decline in tech was exacerbated by a cautious outlook from prominent firms, which has led many investors to reassess their positions. The market's response indicates a growing skepticism about the ability of tech companies to maintain their growth trajectories in the face of rising interest rates and inflationary pressures. ## Magnificent 7 Performance **$NVDA** - +2.5% - Shares of Nvidia rebounded after speculation regarding a potential $20 billion investment in OpenAI, signaling strong confidence in AI-driven growth. **$AAPL** - -1.8% - Apple faced selling pressure following a mixed earnings report where growth in iPhone sales was overshadowed by concerns about supply chain challenges and rising costs. **$MSFT** - -2.0% - Microsoft's shares fell as investors digested its earnings, which beat expectations but included cautious guidance that raised concerns about future growth. **$GOOGL** - -2.3% - Alphabet's stock declined amid worries over advertising revenue pressures and regulatory scrutiny, which overshadowed its solid earnings performance. **$META** - -3.1% - Meta's decline continued after its earnings report raised questions about its costly investments in the metaverse amid increasing competition in the social media space. **$AMZN** - -1.7% - Amazon's stock slipped as investors reacted to a cautious outlook for its cloud services division, which has been a significant growth driver. **$TSLA** - -0.9% - Tesla shares fell slightly as investors weighed mixed news regarding production targets and supply chain issues impacting delivery timelines. ## Semiconductor Recap The semiconductor sector had a varied performance, with **$NVDA** outperforming the group due to its strong AI positioning. Other key players included **$AMD**, which faced a decline of 3.5% as the market reacted to its earnings report that highlighted a sequential revenue dip. **$AVGO** saw a minor increase of 1.2%, buoyed by positive feedback on its acquisitions and growth strategy. Conversely, **$INTC** continued to struggle, down 2.6% amid ongoing concerns about its competitive positioning in the market. ## Software & Cloud The enterprise software market was notably weak today, with significant declines across many key names. **$CRM** fell 4.5% as it faced headwinds from increased competition and market saturation. **$NOW** saw a drop of 3.0% as concerns over its growth potential in a slowing economy weighed on investor sentiment. **$SNOW** and **$PLTR** also experienced downward pressure, down 2.8% and 3.4% respectively, reflecting a broader trend of investor caution towards software stocks amid fears of valuation corrections. ## Tech After-Hours After the close, **$AMZN** announced a partnership with OpenAI, which could lead to enhanced capabilities in its AWS division, although shares remained under pressure due to prior earnings concerns. **$MSFT** also released an update on its AI investments, affirming its commitment to cloud growth, but the mixed guidance led to continued volatility in its stock price. ## Tomorrow's Tech Watch Investors will be watching closely for further developments in the AI space, particularly any news stemming from the anticipated Nvidia and OpenAI collaboration. Earnings reports from smaller tech firms are also expected to provide insights into market trends and consumer sentiment. Additionally, any commentary from Fed officials regarding interest rates could further impact tech stocks as investors assess the macroeconomic landscape.