Tech Focus - February 25, 2026 (EOD)

 ## Tech Sector Wrap The technology sector showed robust strength today, with the XLK ETF rising 1.28% amid broad gains in tech stocks. The Nasdaq 100 outperformed the broader market, climbing 1.13%, driven largely by renewed optimism around AI and semiconductor demand. Investor focus was sharply on Nvidia’s fiscal Q4 earnings and outlook, which delivered a strong beat and reinforced the AI-driven growth narrative. This helped lift sentiment across chipmakers and software companies alike, despite some mixed earnings reports within the sector. However, not all tech names participated equally. Some software companies faced pressure after cautious guidance or concerns about AI-related disruption. Meanwhile, chip stocks benefited from expectations of sustained capital spending on AI infrastructure. Overall, the tech sector’s outperformance today was a clear reflection of the market’s renewed confidence in AI’s transformative potential, with Nvidia leading the charge and other AI beneficiaries following suit. ## Magnificent 7 Performance **$NVDA** +6.5% - Nvidia’s Q4 FY26 results impressed with record $68 billion revenue driven by strong demand for its Blackwell AI chips. CEO Jensen Huang emphasized that the AI boom is accelerating, not slowing, which helped dispel fears of an AI threat to software companies and boosted the stock. **$AAPL** -2.73% - Apple shares declined despite the broader tech rally, pressured by investor concerns over supply chain risks and cautious outlook comments. Shareholders also rejected a proposal for a report on China manufacturing risks, adding to uncertainty. **$MSFT** data not available. **$GOOGL** data not available. **$META** data not available. **$AMZN** data not available. **$TSLA** data not available. ## Semiconductor Recap Chip stocks showed mixed but generally positive performance amid Nvidia’s strong earnings and upbeat AI outlook. **$NVDA** surged 6.5% on record revenue and bullish commentary on AI demand. **$AMD** fell 2.69% despite the Meta partnership announcement, as investors remain cautious on near-term chip demand and margin pressures. **$AVGO** data not available. **$INTC** data not available. Applied Materials (**$AMAT**) was a notable outperformer, rising 3.79% after presenting at the SPIE Advanced Lithography conference, signaling optimism around semiconductor equipment demand. Seagate Technology (**$STX**) also gained 3.79%, benefiting from its positioning in AI infrastructure storage solutions. ## Software & Cloud Enterprise software stocks had a mixed day amid AI-related concerns and earnings reports. **$CRM** data not available. **$NOW** +1.46% - ServiceNow gained modestly following its Q4 earnings beat and steady outlook, showing resilience despite AI uncertainty. **$SNOW** data not available in price but multiple headlines noted mixed Q4 earnings with a revenue beat but cautious guidance. Snowflake’s acquisition of Observe was highlighted as a growth driver, expected to contribute about one percentage point of product revenue growth by FY27. **$PLTR** data not available. CrowdStrike (**$CRWD**) rose 2.46% after announcing a partnership with VAST Data to integrate AI-driven data governance with its threat detection platform, reinforcing its AI growth narrative. ## Tech After-Hours Nvidia’s after-hours trading remained strong following its blockbuster earnings report, with shares continuing to rally as investors digest the company’s record revenue and optimistic AI outlook. The company’s CEO Jensen Huang’s remarks that the AI boom is accelerating have set a positive tone for the sector. Snowflake’s Q4 earnings call also occurred after the close, with the stock dipping slightly amid mixed guidance despite beating revenue and EPS estimates. The acquisition of Observe for about $600 million was a key highlight, expected to boost future growth. ## Tomorrow's Tech Watch Investors will closely monitor upcoming earnings from major tech players such as Microsoft and Alphabet, which could provide further clarity on AI adoption and cloud growth trends. Semiconductor equipment companies and AI-focused software firms will also be in focus as the market seeks confirmation of sustained capital expenditure in AI infrastructure. Watch for updates on AI-related partnerships and acquisitions, as well as guidance from software companies on how AI is impacting their revenue and margins. Additionally, investor sentiment will be sensitive to any macroeconomic data that could influence tech spending. Key catalysts include: - Microsoft and Alphabet Q4 earnings reports - Further commentary from Nvidia on AI demand trajectory - Software companies’ AI integration progress and margin outlooks - Semiconductor capital spending updates These factors will shape the near-term direction of the tech sector as AI remains the dominant theme driving market expectations.