Tech Focus - February 05, 2026 (EOD)

 ## Tech Sector Wrap Today, the tech sector experienced a significant sell-off, driven largely by concerns surrounding rising capital expenditures in the industry, particularly highlighted by **$AMZN**'s announcement of a massive $200 billion investment in AI. This aggressive spending plan sparked fears that the company's financial health might be at risk, leading to a sharp decline in its stock price, which fell approximately 8%. The broader tech market followed suit, with many investors becoming increasingly skittish about the sustainability of growth rates in the face of such hefty investments. Additionally, the ongoing uncertainty regarding AI's impact on software companies has compounded worries. As companies like **$MSFT** and **$GOOGL** report mixed earnings and revenue forecasts, anxiety over the so-called 'SaaS apocalypse' has sent shares tumbling. The combination of these factors created a perfect storm for tech stocks, which saw substantial declines across major players. ## Magnificent 7 Performance **$NVDA** - (-5.2%) - Shares plunged in response to broader tech sell-off and concerns over semiconductor demand amid AI spending fears. **$AAPL** - (-1.5%) - Despite not having significant news, the stock was dragged down by the overall sector decline. **$MSFT** - (-5.0%) - The company faced downward pressure due to negative sentiment surrounding AI capabilities and competition. **$GOOGL** - (-4.8%) - Stock fell sharply after reporting its ambitious AI spending plan, which raised concerns regarding future profitability. **$META** - (-3.6%) - The stock continued to suffer from market fears about its advertising revenue in an increasingly competitive landscape. **$AMZN** - (-8.0%) - The company’s announcement of a $200 billion AI spending plan spooked investors, triggering a sharp sell-off. ## Semiconductor Recap **$NVDA**, **$AMD**, **$AVGO**, **$INTC** - Semiconductor stocks were significantly impacted, with **$NVDA** dropping 5.2% due to fears over reduced demand for chips in the wake of AI spending concerns. **$AMD** also faced selling pressure, declining 4.0% as investors worried about competition in the GPU market. **$AVGO** and **$INTC** followed suit, both experiencing declines of approximately 3.5% and 2.7%, respectively, as the sector's outlook became increasingly clouded. ## Software & Cloud **$CRM**, **$NOW**, **$SNOW**, **$PLTR** - Cloud and software stocks faced significant headwinds today. **$CRM** saw a dip of 6.1% as the market reacted to concerns about future growth in subscription revenues. **$NOW** fell 5.5% amid fears that rising AI investments would lead to increased operational costs. **$SNOW** and **$PLTR** also suffered, down 4.2% and 3.9%, respectively, as investors assessed the sustainability of revenue growth in a rapidly changing tech landscape. ## Tech After-Hours After the market close, **$QCOM** reported its Q1 2026 earnings, missing expectations due to a dire warning about a worsening memory shortage impacting future sales. The stock fell 10% in after-hours trading as investors reacted negatively to the outlook. ## Tomorrow's Tech Watch Investors will be closely monitoring further earnings reports, particularly from **$AAPL** and **$MSFT**, as well as any additional guidance on capital expenditures in the tech sector. The market will also be looking for updates on AI developments from major players, as concerns about spending and profitability continue to loom large.