Tech Focus - February 04, 2026 (EOD)

 ## Tech Sector Wrap The tech sector experienced significant volatility today, as fears surrounding AI disruption led to a notable sell-off. Investors reacted to recent earnings reports and guidance updates, particularly from major players like **$AMD** and **$NVDA**, which raised concerns about future revenue streams in a rapidly evolving landscape. The overall sentiment was weighed down by anxiety that AI advancements could render certain software solutions obsolete, leading to declines across the software and semiconductor sub-sectors. Despite these challenges, some stocks managed to buck the trend. **$AAPL** was a standout performer, gaining ground as it released positive news related to its product pipeline and strategic initiatives. Conversely, **$AMZN** and **$TSLA** faced headwinds due to mixed earnings expectations and rising competition, contributing to the broader market's downturn. ## Magnificent 7 Performance **$NVDA** - (-3.5%) - The stock faced downward pressure following concerns about AI chip sales to China being stalled due to U.S. security reviews, heightening fears of reduced demand in a key market. **$AAPL** - (+2.1%) - Shares rallied on reports of positive product developments and a strong outlook for upcoming product launches, helping it stand out amid the tech sell-off. **$MSFT** - (-2.7%) - The stock declined as concerns over its exposure to AI disruption and competitive pressures from newer entrants weighed heavily on investor sentiment. **$AMD** - (-16.7%) - The company reported earnings that, while solid, failed to allay investor fears about slowing growth in its data center segment, leading to a sharp drop in share price. **$META** - (+0.4%) - Despite the overall tech weakness, Meta's focus on AI-driven products provided a slight boost to investor confidence, allowing it to close marginally higher. **$AMZN** - (-4.2%) - Amazon's shares fell sharply as earnings projections came in below expectations, raising concerns about its ability to maintain growth in an increasingly competitive e-commerce landscape. **$TSLA** - (-1.9%) - Tesla's stock also faced headwinds following mixed quarterly results, which raised questions about future demand and pricing power amid intensifying competition in the electric vehicle sector. ## Semiconductor Recap The semiconductor sector experienced a tumultuous day with notable declines across major players: **$NVDA** - (-3.5%) - The stock was heavily impacted by fears of regulatory hurdles affecting its AI chip sales to China, sparking widespread sell-offs in the sector. **$AMD** - (-16.7%) - The steep drop was driven by disappointing earnings that failed to meet market expectations, coupled with concerns regarding a slowdown in demand for its chips. **$AVGO** - (-2.5%) - Broadcom's shares dipped as the market reacted to the overall negative sentiment surrounding semiconductor demand and pricing pressures. **$INTC** - (-1.2%) - Intel continued to struggle as it faced ongoing challenges in regaining market share amid fierce competition and operational hurdles. ## Software & Cloud The software and cloud sectors were significantly impacted by fears of AI disruption: **$CRM** - (-4.0%) - Salesforce shares fell amid concerns that its growth trajectory could be hampered by the rapid adoption of AI solutions that could outperform traditional CRM systems. **$NOW** - (-5.5%) - ServiceNow experienced a sharp decline as investors worried about its ability to compete against upcoming AI-driven platforms that could disrupt its core business. **$SNOW** - (-6.8%) - Snowflake's shares tumbled as the company faced scrutiny over its growth potential in a landscape increasingly dominated by AI solutions. **$PLTR** - (-3.3%) - Palantir also saw declines as investors reassessed its valuation in light of the AI-driven market dynamics that could overshadow its existing services. ## Tech After-Hours After the market closed, **$AMZN** reported its earnings, which fell short of analyst expectations. The guidance for the upcoming quarter indicated potential headwinds, primarily due to increased competition and a challenging e-commerce environment. Additionally, **$AMD** is set to provide further insights into its earnings and demand outlook, which investors will closely monitor for signs of recovery. ## Tomorrow's Tech Watch Key catalysts for tomorrow include the anticipated earnings reports from major tech players such as **$GOOGL** and **$MSFT**, which could provide further clarity on the industry's direction amid the current AI-driven landscape. Additionally, investors will be watching for any further developments regarding U.S.-China trade relations impacting the semiconductor sector, particularly concerning regulatory scrutiny on tech exports.