Tech Focus - February 27, 2026 (EOD)

 ## Tech Sector Wrap The technology sector faced a broad selloff today, with the XLK ETF declining 1.83% amid growing concerns over AI-driven market volatility and mixed earnings reports. The Nasdaq 100 also slipped 0.60%, reflecting cautious investor sentiment as fears around AI competition and cost pressures weighed on tech stocks. Despite some pockets of strength, the sector struggled to maintain momentum, pressured by profit-taking following recent rallies and uncertainty about near-term growth trajectories. Several tech companies reported earnings or provided guidance that failed to fully assuage investor concerns, notably in the software and semiconductor spaces. AI-related hype showed signs of cooling, with some investors reassessing valuations amid rising capital expenditures and margin pressures. The market's risk-off tone was further exacerbated by macroeconomic worries, including inflation data and geopolitical tensions, which collectively dampened appetite for high-growth tech names. ## Magnificent 7 Performance **$NVDA** - data not available **$AAPL** - data not available **$MSFT** - data not available **$GOOGL** - data not available **$META** - data not available **$AMZN** - data not available **$TSLA** - data not available No significant moves or news were reported for the Magnificent 7 stocks today. ## Semiconductor Recap The semiconductor sector showed mixed performance amid ongoing AI-related concerns and earnings updates. **$NVDA** data not available for price movement, but Nvidia remains a focal point for AI-driven growth narratives. **$AMD** declined 2.12%, reflecting investor caution despite its strong position in the chip market. The pullback likely stems from broader sector weakness and profit-taking after recent gains. **$AVGO** data not available. **$INTC** data not available. Overall, chip stocks faced pressure as investors digested mixed earnings and margin outlooks, with some worries about rising capital expenditures impacting near-term profitability. ## Software & Cloud Enterprise software stocks experienced modest declines amid AI fears and cautious outlooks. **$CRM** data not available. **$NOW** fell 1.18%, continuing a trend of profit-taking despite solid business fundamentals. **$SNOW** data not available. **$PLTR** data not available. The software segment is grappling with investor skepticism about the sustainability of AI-driven growth, with some companies seeing their shares retreat despite positive earnings beats. ## Tech After-Hours Dell Technologies (**$DELL**) surged 21.24% during the regular session, driven by a strong Q4 earnings report and a bullish forecast for AI server revenue, which is expected to double. This after-hours momentum highlights investor enthusiasm for companies capitalizing on AI infrastructure demand. Applied Optoelectronics (**$AAOI**) jumped 61.39% on robust Q4 results and optimistic guidance, signaling strength in the optical components market tied to data center expansion. This surge in after-hours trading underscores the positive investor reaction to growth in AI-related hardware. Conversely, CoreWeave (**$CRWV**) tumbled 18.61% amid a disappointing Q4 loss and a weaker revenue outlook, highlighting the challenges some AI infrastructure providers face in balancing growth with profitability. ## Tomorrow's Tech Watch Investors should monitor upcoming earnings and guidance from key software and semiconductor players, as these will provide further clarity on AI adoption impacts and margin trends. Watch for updates from companies like Zscaler (**$ZS**), which recently reported a 12.65% drop amid concerns over sales growth metrics, and Duolingo (**$DUOL**), which declined 14.77% following guidance to double daily active users by 2028 but with near-term execution questions. Additionally, the market will focus on macroeconomic data releases and any further developments in AI funding and regulatory discussions, which could influence tech sector sentiment. The ongoing geopolitical tensions and inflation data will also be key factors shaping investor appetite for growth-oriented tech stocks. --- This session highlighted the tech sector's sensitivity to AI hype cycles and profitability concerns, with a clear divergence between winners like Dell and Applied Optoelectronics and laggards such as CoreWeave and Zscaler. Investors remain cautious, balancing optimism about AI's long-term potential with near-term execution risks.