Tech Focus - February 26, 2026 (Morning)

 ## Tech Sector Pulse Tech sector sentiment is buoyed by strong earnings and optimistic guidance from key players, particularly in the semiconductor and AI infrastructure space. The Nasdaq 100 rose 1.49% overnight, outpacing the broader S&P 500's 0.96% gain, while the Technology ETF (XLK) surged 2.12%, signaling renewed investor confidence in tech stocks. This rally is largely driven by Nvidia’s robust quarterly results and upbeat outlook, which have eased concerns about an AI spending slowdown. Despite some mixed signals in software and cloud, the overall narrative remains positive as AI adoption accelerates across industries. Analysts continue to highlight the expanding role of AI in enterprise software, with HSBC dismissing fears of a "SaaSpocalypse" and instead emphasizing AI as a growth catalyst for SaaS companies. However, some caution persists around valuation and growth sustainability, especially in names with recent downgrades or muted guidance. ## Big Tech Watch **$NVDA** Nvidia reported an outstanding quarter with strong earnings and revenue beats, driven by surging demand for AI chips and data center products. CEO Jensen Huang emphasized accelerating growth and highlighted "agentic AI" as a key future driver. Despite the strong results, Nvidia's stock saw only marginal gains post-earnings, suggesting some investor caution on valuation. Multiple analysts reiterated buy ratings and raised price targets, citing Nvidia’s dominant position in AI infrastructure. **$AAPL** Apple shares declined 2.93% to $120.75 after news surfaced of a partnership between Avalon GloboCare and AMD to enhance AI capabilities, indirectly highlighting competitive pressures in the AI chip space. While Apple itself had no direct earnings or guidance updates, the partnership news underscores the intensifying AI arms race among chip suppliers, which could impact Apple’s future AI hardware strategy. **$MSFT** Microsoft gained 3.21% to $401.48, buoyed by strong cloud growth and AI integration across its product suite. The company is reportedly planning worker redeployments to support its AI push, signaling a strategic focus on AI-driven enterprise solutions. Microsoft’s solid performance reflects investor optimism about its ability to monetize AI at scale. **$GOOGL** Alphabet’s shares saw data not available for price movement, but the company remains a key player in AI and cloud. Analysts note Alphabet is winning in AI and cloud but see limited near-term upside, suggesting the stock is consolidating after recent gains. **$META** Data not available. **$AMZN** Amazon’s stock movement data not available, but the company is in the spotlight for its $50 billion investment in OpenAI, tied to potential IPO or AGI milestones. This underscores Amazon’s commitment to AI and cloud leadership. **$TSLA** Tesla rose 1.36% to $414.95, supported by ongoing optimism around its AI-driven autonomous vehicle roadmap and energy products. CEO Elon Musk’s comments on inflation and wealth protection also add a macro layer to Tesla’s narrative. ## AI & Semiconductors AI infrastructure spending remains a dominant theme, with Nvidia leading the charge. The company’s earnings beat and bullish guidance have prompted multiple price target raises from analysts. Nvidia’s CEO highlighted the potential for "hundreds of billions" in future revenue from robotaxi AI applications, signaling long-term growth beyond current data center demand. Chip stocks showed mixed reactions. **$AMD** faced investor skepticism amid doubts about OpenAI’s spending plans, weighing on its shares. **$TSM** gained 0.71% to $388.50, benefiting from the broader semiconductor rally and strong demand for AI chips. **$KLAC** (not in the main list but mentioned in news) saw a 2.88% rise, reflecting optimism about semiconductor equipment spending. **$INTC** and **$AVGO** had no specific news but remain in focus as AI chip demand shapes capital expenditure. Data center trends continue to favor companies with AI-optimized hardware and long-term contracts. Sandisk’s CEO noted a pivot toward long-term data center contracts amid the AI boom, reinforcing the infrastructure buildout narrative. ## Software & Cloud Salesforce (**$CRM**) shares are under pressure despite a 14% net income climb in Q4, as the company issued a muted annual revenue forecast. Needham reiterated a Buy rating with a $400 price target, citing strong AI-driven ARR growth. However, Wells Fargo cut Salesforce’s price target on growth concerns. ServiceNow (**$NOW**) gained 3.38% to $105.95, supported by solid cloud demand and AI integration. Snowflake (**$SNOW**) reported earnings beats but underwhelming guidance, reflecting cautious investor sentiment despite AI product pushes. Oracle (**$ORCL**) fell on concerns about overinvestment and funding needs for AI infrastructure, highlighting the balancing act software firms face between growth and profitability. Palantir (**$PLTR**) received positive attention after Nvidia CEO Jensen Huang’s comments, suggesting AI partnerships could be a growth catalyst. ## Tech Catalysts Today - Earnings reports expected from several mid-cap tech firms, including **$ANET** (Arista Networks), which rose 3.09% pre-market on strong earnings previews. - Analyst updates on Nvidia and Salesforce could influence trading sentiment. - Continued developments in AI partnerships and infrastructure investments from chipmakers and cloud providers. ## Tech Trading Ideas **$NVDA** Watch for continued momentum driven by AI infrastructure demand and potential upside from new AI applications like robotaxis. Despite muted post-earnings gains, analyst upgrades and price target raises suggest a strong buy opportunity. **$NOW** ServiceNow’s solid cloud growth and AI integration position it well for sustained gains. The 3.38% pre-market rise indicates positive investor sentiment ahead of further AI-driven enterprise adoption. **$SNOW** Snowflake’s earnings beat but cautious guidance makes it a key stock to watch for volatility. Investors should monitor how the company navigates AI product development and customer spending trends. Additional names to watch include **$ANET** for data center exposure and **$PLTR** for AI partnership potential.