Tech Focus - February 27, 2026 (Morning)

 ## Tech Sector Pulse Tech stocks faced broad selling pressure overnight, with the Nasdaq 100 down 2.04% and the Technology Select Sector SPDR ETF (XLK) dropping 2.85%. This weakness reflects mounting investor caution amid mixed earnings results and concerns about near-term growth prospects in the sector. The market is digesting a wave of earnings reports, some of which have disappointed on margins or revenue growth, particularly among semiconductor and AI infrastructure-related companies. Additionally, the broader macroeconomic backdrop, including inflation data and geopolitical uncertainties, continues to weigh on sentiment. Despite the pullback, pockets of strength emerged in select software and cloud names, as well as in companies with strong AI-related growth narratives. The AI funding environment remains robust, highlighted by a record $110 billion funding round for OpenAI, signaling continued long-term optimism about AI’s transformative potential. However, investors are differentiating between companies that are capitalizing on AI infrastructure demand and those facing margin pressures or execution challenges. Overall, the tech sector is navigating a complex environment of accelerating innovation tempered by near-term execution risks and macroeconomic headwinds. ## Big Tech Watch **$NVDA** Nvidia shares have been under pressure despite the company’s leadership in AI chips, with the stock down 4.88%. The broader tech selloff and concerns about valuation and margin sustainability have weighed on the name. However, Nvidia remains a key beneficiary of the AI infrastructure boom, and recent commentary from the CEO suggests confidence in continued strong demand for AI servers. The stock’s pullback could present a buying opportunity given its dominant position in the AI chip market. **$AAPL** Data not available. **$MSFT** Data not available. **$GOOGL** Alphabet continues to attract attention from investors, with some analysts suggesting the current price level is a buying opportunity. The company’s diversified revenue streams and investments in AI position it well for 2026. Despite the broader tech weakness, Alphabet’s shares have held relatively steady, reflecting confidence in its long-term growth prospects. **$META** Data not available. **$AMZN** Amazon is in the spotlight following its involvement in the record $110 billion funding round for OpenAI, underscoring its strategic commitment to AI. The company’s expanding footprint in AI and cloud infrastructure supports its growth narrative. Investors will be watching for updates on Amazon’s big-box retail expansion, which could unlock new revenue streams. **$TSLA** Tesla shares declined 3.14% amid the broad tech selloff. While the company continues to innovate in AI and robotics, near-term concerns about valuation and execution in a competitive EV market are pressuring the stock. Tesla’s recent investments in AI-driven manufacturing and autonomous driving remain key long-term growth drivers. ## AI & Semiconductors The AI infrastructure market is heating up, with hyperscalers planning to spend $700 billion on AI this year. Nvidia and Amazon are among the biggest beneficiaries of this surge in AI-related capital expenditures. Nvidia’s GPUs remain the gold standard for AI workloads, and the company’s CEO recently raised the bar on AI expectations, reinforcing confidence in sustained demand. Semiconductor stocks broadly are under pressure, reflecting concerns about inventory cycles and margin compression. **$AMD** fell 4.88%, **$AVGO** declined 5.69%, and **$TSM** dropped 4.21%. These declines come despite strong AI-driven demand signals, suggesting investors are cautious about near-term supply chain and macroeconomic risks. Intel’s data is not available, but the sector’s overall softness highlights the ongoing balancing act between growth optimism and execution risks. Data center trends continue to favor companies involved in AI hardware and cloud infrastructure, but margin pressures and competitive dynamics are creating volatility. The recent $176 million GPU hosting deal signed by Duos Technologies exemplifies growing demand for AI compute capacity. ## Software & Cloud Software and cloud stocks showed mixed performance. **$NOW** edged up 0.64%, reflecting steady demand for enterprise workflow automation. **$SNOW** was flat, indicating investor caution despite the company’s strong cloud data platform positioning. **$PLTR** and **$ORCL** declined slightly, with Oracle down 1.87%, as investors weigh growth prospects against valuation. The software sector is navigating a challenging environment where AI integration offers growth opportunities but also raises expectations for innovation and margin expansion. Salesforce’s recent Q4 results highlighted ongoing investor concerns about buybacks and growth sustainability, signaling that software stocks remain under scrutiny. ## Tech Catalysts Today Key earnings reports to watch today include: - **Docebo Inc. (DCBO)** with EPS estimate of $0.3544 and revenue estimate of $63M, representing a smaller software player in the AI-driven learning space. - **1stdibs.com Inc. (DIBS)** expected to report EPS of -$0.04 and revenue of $23M, offering insight into e-commerce and digital marketplace trends. - **Gogo Inc. (GOGO)** with EPS estimate of $0.01 and revenue of $221M, relevant for tech in aviation connectivity. - **Intest Corp. (INTT)** with EPS estimate of $0.11 and revenue of $31M, a semiconductor equipment player to watch. - **Natera, Inc. (NTRA)** and **AvePoint, Inc. (AVPT)** reporting earnings, both involved in data and cloud services. These reports will provide further clarity on how mid-cap tech companies are navigating the current environment, particularly in AI and cloud adoption. ## Tech Trading Ideas - **$DELL**: Shares surged 9.73% after beating revenue and profit expectations, driven by a forecast to double AI server revenue. Dell is a key player in AI infrastructure hardware and could benefit from the ongoing AI spending surge. - **$NFLX**: Netflix jumped 11.44% on strong subscriber growth and strategic moves, including dropping its Warner Bros. bid to focus on content investments. This rebound suggests renewed investor confidence in streaming growth and content strategy. - **$ARLO**: Up 21.75% following positive earnings and product momentum in smart home security. Arlo’s growth in connected devices positions it well amid rising demand for smart home technology. Traders should monitor these names for momentum plays as market volatility persists and AI-related catalysts unfold.