Tech Focus - February 06, 2026 (EOD)

 ## Tech Sector Wrap The tech sector experienced a tumultuous trading session today, marked by a significant sell-off as investors reacted to a series of disappointing earnings reports and rising concerns over a potential AI spending bubble. Major players like **$AMZN** and **$MSFT** faced downward pressure, with **$AMZN** particularly impacted by fears surrounding its $200 billion capex plan which raised questions about cash flow sustainability. The broader market sentiment was cautious, resulting in the Nasdaq experiencing a notable decline. Meanwhile, **$NVDA** emerged as a bright spot, rebounding sharply as investors responded positively to CEO Jensen Huang's reassurances about the sustainability of their aggressive investments in AI infrastructure. This divergence highlights the ongoing narrative in tech, where AI remains a double-edged sword—offering potential for growth while simultaneously raising concerns about overvaluation. ## Magnificent 7 Performance **$NVDA** - +7% - The stock surged following comments from CEO Jensen Huang regarding sustainable growth and ongoing investments in AI, reassuring investors amid broader tech sell-off. **$AAPL** - -2% - Apple shares dipped as market sentiment turned bearish. Analysts expressed concerns regarding supply chain issues affecting production timelines, particularly in the wake of rising tariffs. **$MSFT** - -4% - Microsoft faced pressure after a disappointing earnings report, leading investors to reassess future growth prospects in a competitive cloud landscape. **$AMZN** - -5% - Amazon's stock fell sharply as investors reacted negatively to its massive capex plan, sparking fears about cash flow and long-term profitability. **$GOOGL** - -3% - Alphabet saw a decline as the market digested its recent AI announcements, which, while ambitious, raised questions about execution and future profitability. ## Semiconductor Recap The semiconductor sector had a mixed performance today: **$NVDA** - +7% - As noted, NVIDIA's optimistic outlook on AI investments helped bolster its stock. **$AMD** - -2% - AMD shares slipped amid the overall market decline, with concerns about competitive pressures in the chip market. **$AVGO** - -1.5% - Broadcom faced selling pressure as investors reassessed the company's growth trajectory in light of recent earnings. **$INTC** - -3% - Intel continued to struggle, with ongoing concerns about its ability to compete in the advanced chip market, particularly against more agile competitors like AMD and NVIDIA. ## Software & Cloud In the enterprise software space, the following stocks stood out: **$CRM** - -4% - Salesforce shares fell after disappointing earnings, leading to a reassessment of its growth forecasts in a slowing economic environment. **$NOW** - -3.5% - ServiceNow's stock dropped sharply as investors reacted to concerns over its ability to maintain growth amid increasing competition in the cloud services sector. **$SNOW** - -5% - Snowflake experienced a sell-off following a weaker than expected earnings report, prompting concerns over its growth sustainability. **$PLTR** - -2% - Palantir continued to face pressure, with analysts citing ongoing doubts about its long-term revenue growth potential. ## Tech After-Hours Post-market trading saw **$AMZN** release its Q4 earnings report, which, despite beating revenue expectations, raised significant concerns about future cash flow due to its aggressive capital expenditures. **$MSFT** also reported, but its outlook disappointed investors, further contributing to the sell-off. ## Tomorrow's Tech Watch Investors will be closely monitoring upcoming earnings from **$FB** and **$TSLA**, both of which could influence market sentiment. Additionally, any developments regarding regulatory scrutiny on tech giants, particularly concerning AI practices, will be pivotal in shaping the trading landscape. Analysts will be looking for signs of resilience in consumer demand and any adjustments to forward guidance amidst a challenging economic backdrop.