Tech Focus - February 26, 2026 (EOD)

 ## Tech Sector Wrap The technology sector faced a broad sell-off today, with the XLK ETF declining 2.18%, reflecting investor concerns about the sustainability of AI-driven growth and mixed earnings results from key players. The Nasdaq 100 also dropped 1.57%, underperforming the S&P 500, which fell 0.97%. The market mood was dampened by a notable decline in Nvidia shares despite its strong earnings beat, as investors digested cautious forward guidance and signs of cooling AI spending momentum. This weighed heavily on chipmakers and AI-related software stocks, triggering a rotation away from some high-flying names. Investor sentiment was further unsettled by mixed earnings reports across the tech landscape, with some companies beating expectations while others issued cautious outlooks or missed estimates. The software sector showed pockets of resilience, particularly among cloud and enterprise software providers with AI integration strategies. However, the overall tone was cautious as market participants reassessed valuations amid concerns over AI spending sustainability and macroeconomic uncertainties. The tech sector’s weakness today underscores the challenges in balancing enthusiasm for AI innovation with near-term execution risks. ## Magnificent 7 Performance **$NVDA** -3.96% - Despite delivering a strong Q4 earnings beat and robust revenue growth driven by AI demand, Nvidia’s shares fell sharply. The decline was attributed to cautious guidance and investor concerns about a potential slowdown in AI spending. Analysts noted that while Nvidia remains a leader in AI chips, the stock is facing profit-taking and rotation pressures. **$AAPL** -3.01% - Apple shares declined amid broader tech weakness and a downgrade citing concerns over its negotiating power and innovation pipeline. The company also faced a lawsuit related to Siri AI, adding to investor caution despite its solid fundamentals. **$MSFT** -0.84% - Microsoft dipped modestly as investors digested mixed signals from its earnings and cautious commentary on AI spending. The stock showed relative resilience compared to peers, supported by strong cloud and AI platform growth. **$META** - data not available **$AMZN** - data not available **$GOOGL** - data not available **$TSLA** - data not available ## Semiconductor Recap Chip stocks were broadly weak following Nvidia’s disappointing post-earnings reaction. **$NVDA** fell 3.96% despite strong results, weighed down by cautious guidance and fears of AI spending moderation. **$AMD** data not available. **$AVGO** data not available. **$INTC** data not available. Other semiconductor-related names showed mixed performance, with some like MACOM (MTSI) down 2.47% despite positive analyst commentary on AI demand growth, reflecting sector-wide volatility. ## Software & Cloud Enterprise software stocks showed pockets of strength amid the tech sell-off. **$CRM** data not available. **$NOW** +1.98% - ServiceNow gained on solid earnings and optimistic AI-driven growth outlook, bucking the broader tech weakness. **$SNOW** data not available. **$PLTR** data not available. Other software names like Snowflake saw positive analyst upgrades, while some AI-focused software companies faced pressure due to concerns about AI spending sustainability. ## Tech After-Hours After-hours trading saw mixed developments. IonQ surged 18.31% following a strong Q4 earnings report and upbeat 2026 guidance, highlighting the growing interest in quantum computing. CoreWeave’s stock dropped sharply post-earnings despite a 110% revenue surge, as profitability concerns and rising interest expenses weighed on sentiment. Dell Technologies jumped 8.77% on record earnings, signaling effective management of memory shortages and strong demand. Meanwhile, Zoom shares tumbled 12.95% after missing earnings and issuing soft profit guidance, reflecting ongoing challenges in video conferencing demand. ## Tomorrow's Tech Watch Key catalysts to watch include earnings from several AI and cloud-focused companies, which could provide further clarity on the sustainability of AI spending. Investors will also monitor updates from Nvidia and other chipmakers for signs of demand trends in data centers and gaming. The market will keep an eye on developments in AI infrastructure deals, including Google’s multibillion-dollar AI chip agreement with Meta, which could have significant implications for cloud and AI hardware sectors. Additionally, software companies like Salesforce and Snowflake are expected to report, with their AI integration strategies under scrutiny. Macro factors such as inflation data and central bank commentary will also influence tech sector sentiment tomorrow.