Tech Focus - February 23, 2026 (Morning)

 ## Tech Sector Pulse Tech sentiment this morning is cautiously optimistic as the broader market edges higher with the S&P 500 and Nasdaq 100 both up 0.43%. However, the technology sector ETF (XLK) is slightly down by 0.11%, reflecting mixed investor reactions within tech stocks. The sector faces headwinds from recent earnings misses and margin concerns, particularly in enterprise software and semiconductor stocks, which are tempering enthusiasm despite ongoing AI-driven growth narratives. Key themes driving the tech sector include the ongoing AI infrastructure buildout, with companies deepening partnerships to scale AI beyond pilot projects. Meanwhile, chipmakers are navigating a complex environment of supply chain advances and cautious spending. The Supreme Court’s recent tariff ruling has added a layer of uncertainty around trade policies, impacting some hardware and semiconductor supply chains. Investors are also digesting competitive dynamics in obesity-related biotech tech, where new drug launches and trial results are influencing sentiment in tech-enabled healthcare. ## Big Tech Watch **$NVDA** Nvidia remains in focus ahead of its earnings report, with anticipation building around its AI infrastructure leadership. Despite some billionaire investors reportedly trimming positions ahead of earnings, Nvidia’s role as a key AI chip supplier keeps it central to the sector’s growth story. The stock is under pressure from broader AI stock resets but remains a critical bellwether for AI demand. **$AAPL** Apple continues to be a powerhouse with its massive installed base of 2.5 billion active devices, reinforcing its ecosystem moat. However, some analysts argue that the stock is fully valued given the lack of near-term catalysts. Apple’s innovation pipeline and services growth remain key to sustaining momentum, but no new product announcements were reported overnight. **$MSFT** Microsoft is navigating leadership changes with Phil Spencer’s retirement from the gaming division and Asha Sharma stepping in. This transition is closely watched given gaming’s role in Microsoft’s growth strategy. The company’s deepening AI partnerships and cloud investments continue to support its long-term outlook. **$GOOGL** Alphabet’s cloud and AI segments are gaining positive analyst attention, with Wells Fargo upgrading the stock based on its expanding compute capacity and AI leadership. The company’s spinout Aalyria, valued at $1.3 billion, highlights Alphabet’s push into space-based communications, signaling diversification beyond core search and advertising. **$META** Meta Platforms delivered encouraging news for Nebius investors as AI cloud demand surges. The company is capitalizing on its AI investments to drive cloud profitability, positioning itself as a growing player in enterprise AI infrastructure. **$AMZN** Data not available. **$TSLA** Tesla’s shares declined 0.97% amid broader market caution, with no specific news overnight. The stock remains sensitive to EV demand forecasts and competitive pressures in the automotive tech space. ## AI & Semiconductors The AI infrastructure buildout is accelerating with OpenAI deepening partnerships with consulting giants to push enterprise AI beyond pilot phases. This trend is fueling demand for high-performance computing and data center capacity. Among chip stocks, **$ADI** rose 2.37% on optimism about the chip cycle recovery and strong demand for analog and mixed-signal components. **$TSM** gained 2.22%, reflecting positive sentiment around Taiwan Semiconductor’s capacity expansion and advanced node production. Conversely, **$AMD** slipped 2.44%, weighed down by margin concerns and cautious guidance. **$AVGO** declined 0.76%, while **$INTC** data is not available. Semiconductor equipment maker ASML unveiled an EUV light source advance that could increase chip output by 50% by 2030, a significant technological leap that may ease supply constraints and support future semiconductor growth. Data center trends show increased credit rating efforts to unlock billions in funding for AI expansion, signaling strong capital flow into hyperscale infrastructure. ## Software & Cloud Enterprise software stocks faced pressure with **$NOW** down 4.55% and **$ORCL** down 6.80%, reflecting concerns over margin compression and slower growth outlooks. **$PLTR** also declined 1.54%, as investors weigh the impact of AI on enterprise software spending patterns. Despite these near-term challenges, the sector remains a key beneficiary of AI-driven digital transformation, with companies adjusting strategies to balance growth and profitability. ## Tech Catalysts Today - Nvidia’s earnings report is highly anticipated and could set the tone for AI-related tech stocks. - Home Depot (**$HD**) is expected to report Q4 earnings, which could indirectly impact tech suppliers and retail tech. - Domino’s Pizza (**$DPZ**) recently reported strong Q4 results and dividend hikes, signaling robust digital ordering platforms. - Microsoft’s gaming leadership transition may be further discussed in upcoming investor communications. ## Tech Trading Ideas - **$NVDA**: Watch for earnings and guidance as Nvidia’s AI leadership could drive upside or downside volatility. - **$TSM**: Positive momentum from capacity expansion and semiconductor cycle recovery makes it a key chip stock to monitor. - **$ORCL**: The sharp pullback presents a potential entry point if margin concerns ease and AI adoption accelerates in enterprise software.