Tech Focus - February 23, 2026 (EOD)

 ## Tech Sector Wrap The technology sector faced notable headwinds today, reflected in the XLK ETF's 1.68% decline amid broad market weakness and renewed concerns over AI-related risks and tariff uncertainties. The Nasdaq 100 also fell by 1.03%, dragging many tech giants lower. Investor sentiment was dampened by a mix of cautious earnings previews and sector-specific challenges, including a sell-off in software and payments stocks following a critical post on AI risks. Additionally, tariff-related uncertainties resurfaced, contributing to risk aversion in growth-oriented tech names. The sector's underperformance was compounded by a wave of profit-taking ahead of key earnings reports, particularly from AI-focused companies. Despite the overall negative tone, pockets of strength emerged in select names with strong earnings momentum or promising AI-related developments. However, the broader tech landscape remains volatile as investors reassess valuations and growth prospects amid macroeconomic and geopolitical uncertainties. ## Magnificent 7 Performance **$NVDA** - data not available for exact % change but noted as a key AI star with anticipation building ahead of earnings. Nvidia remains a focal point for AI enthusiasm despite broader market jitters. **$AAPL** - data not available for exact % change. Apple is viewed as relatively insulated from AI bubble fears and continues to be a major device ecosystem player, with some analysts suggesting it could be a safe haven in the tech space. **$MSFT** - data not available for exact % change. Microsoft’s gaming division saw leadership changes with Phil Spencer retiring, which may weigh on near-term sentiment, but the company’s AI investments keep it in focus. **$META** - data not available for exact % change. Meta’s recent survey revealing concerns about Instagram content for teens adds to regulatory scrutiny, but the company remains a key player in AI and social media. **$AMZN** - slipped amid news of a $12 billion investment in Louisiana AI data centers, reflecting ongoing commitment to AI infrastructure despite the broader tech sell-off. **$TSLA** - data not available for exact % change. Tesla remains under pressure amid slowing EV sales, but legal actions against California DMV and autonomous vehicle developments keep it in the spotlight. ## Semiconductor Recap Chip stocks showed mixed performance with a general downward bias amid broader tech weakness. **$NVDA** remains a key AI leader with strong anticipation for upcoming earnings, though its shares have been volatile amid AI hype and valuation concerns. **$AMD** declined 1.98% to $196.18, pressured by sector-wide weakness and cautious investor sentiment ahead of earnings. **$AVGO** data not available for exact % change, but analyst commentary suggests optimism about its long-term positioning despite near-term volatility. **$INTC** data not available for exact % change. Intel continues to navigate competitive pressures and AI-related investment cycles. ## Software & Cloud Enterprise software stocks were notably weak today, reflecting investor concerns about AI risks and margin pressures. **$CRM** data not available for exact % change but faced selling pressure amid broader software sell-off. **$NOW** declined 3.28% to $100.85, weighed down by cautious outlooks and sector rotation away from high multiple software names. **$SNOW** data not available for exact % change but remains under pressure from valuation concerns and AI-related uncertainty. **$PLTR** saw a notable decline, reflecting governance questions and market reassessment of AI growth sustainability. ## Tech After-Hours After the market close, several tech companies reported earnings or provided updates that could influence tomorrow’s trading. Notably, Ultra Clean Holdings (**$UCTT**) reported Q4 earnings with a minor EPS miss, causing a 7.02% decline in regular trading. PayPal (**$PYPL**) jumped 6.12% on takeover rumors and a sudden CEO change, signaling potential M&A activity that could reshape the payments landscape. Additionally, MediaAlpha (**$MAX**) surged 10.08% following a strong Q4 earnings call, highlighting growth momentum in digital advertising tech. ## Tomorrow's Tech Watch Investors will closely monitor Nvidia’s upcoming earnings report, which is expected to set the tone for AI-related tech stocks. Market participants will also watch for updates from other AI infrastructure players and software companies to gauge the sustainability of the AI-driven rally. PayPal’s takeover buzz and Ultra Clean’s earnings reaction will be key to watch for potential sector spillover. Additionally, tariff developments and regulatory news remain critical catalysts that could influence tech sector volatility in the near term.