Tech Focus - March 02, 2026 (EOD)

 ## Tech Sector Wrap The tech sector edged higher today, with the Technology Select Sector SPDR Fund (XLK) gaining 0.32% amid a broadly cautious market environment. Despite geopolitical tensions in the Middle East and a slight pullback in the broader S&P 500 and Nasdaq 100, tech stocks showed resilience, supported by strong earnings reports and continued investor interest in AI-related developments. The sector's outperformance was driven largely by select software and semiconductor companies that reported robust quarterly results or provided optimistic guidance. Investor focus remained on AI infrastructure and enterprise software, with several companies highlighting growth in AI-related revenue streams. However, concerns about rising costs and cautious guidance from some software firms tempered enthusiasm. The geopolitical backdrop contributed to defensive positioning, with defense-related tech names also seeing gains. Overall, the tech sector demonstrated a mixed but constructive tone, balancing growth optimism with macro uncertainties. ## Magnificent 7 Performance **$MSFT** +0.97% - Microsoft advanced on strong earnings momentum and positive investor sentiment around its AI initiatives, which continue to drive cloud and software growth. The stock benefited from broader sector strength and a solid volume of 35.9 million shares traded. **$NVDA** data not available for the day’s move, but news indicates Nvidia plans to invest $2 billion each in Lumentum and Coherent to enhance AI optical networking capabilities, signaling confidence in its AI chip leadership despite recent volatility. **$AAPL** data not available for the day’s move, but Apple launched a lower-cost iPhone 17e and a new iPad Air powered by its M4 chip, aiming to expand its AI hardware footprint and maintain market share in consumer devices. **$AMZN** data not available for the day’s move, though reports highlight Amazon’s AWS experiencing power and connectivity issues in Bahrain and UAE amid Iran strikes, which may pose short-term operational challenges. **$META** data not available for the day’s move. **$GOOGL** data not available for the day’s move. **$TSLA** data not available for the day’s move. ## Semiconductor Recap Chip stocks faced mixed trading amid geopolitical tensions and AI sector dynamics. **$AMD** declined 1.39% to $197.43, pressured by cautious sentiment around AI spending and competitive dynamics despite a significant Meta deal seen as a potential game changer for the company. **$INTC** data not available. **$NVDA** plans to invest $4 billion in two photonics companies, Lumentum and Coherent, to bolster AI processor capabilities, underscoring its strategic focus on AI infrastructure despite no specific price move data today. **$AVGO** data not available. **$TSM** slipped 1.46% to $369.10, reflecting broader semiconductor softness and concerns about supply chain and demand uncertainties. ## Software & Cloud Enterprise software stocks showed selective strength, with AI product adoption and margin expansion as key themes. **$CRM** data not available. **$NOW** data not available. **$SNOW** data not available. **$PLTR** surged on defense-related demand amid U.S.-Iran conflict, with Palantir joining the rally in defense stocks, highlighting its AI military moat and strong positioning in government contracts. Notable momentum was seen in smaller software firms embracing AI: - **ASAN** +6.34% on strong Q4 results driven by AI products generating $6 million in ARR and margin expansion. - **OKTA** +1.82% supported by solid Q4 guidance despite sector caution. - **ZETA** +2.54% benefited from positive analyst commentary on AI and growth strategies. - **RAMP** +2.98% on favorable earnings and growth outlook. ## Tech After-Hours Ouster (OUST) reported Q4 earnings after the close, with revenue doubling and margins expanding to 60%, driving a 26.65% surge in after-hours trading. The company’s strong guidance and operational improvements underscore growing demand for lidar technology in autonomous vehicles and defense applications. LendingTree (TREE) also reported Q4 results after hours, beating sales estimates with $319.7 million versus $286.5 million expected, although adjusted EPS missed at $(0.39) versus $0.87 consensus. The company raised Q1 and full-year sales guidance, indicating confidence in its growth trajectory despite near-term profitability challenges. TREE shares jumped 12.39% in regular trading. Core Scientific (CORZ) posted Q4 EPS of $0.42 versus a loss of $(0.69) prior year, with sales of $79.8 million, though below last year’s $94.9 million, reflecting ongoing challenges in the crypto mining sector. ## Tomorrow's Tech Watch Investors will closely monitor upcoming earnings from key software and semiconductor companies to gauge AI adoption trends and margin sustainability. Watch for: - Further updates on Nvidia’s AI chip investments and potential new product announcements. - Software firms’ guidance on AI-driven revenue growth amid macro uncertainties. - Defense-related tech names like Palantir for continued momentum linked to geopolitical tensions. - Market reaction to Ouster’s strong Q4 results and outlook in the autonomous vehicle space. - Broader sector response to ongoing Middle East geopolitical developments impacting supply chains and cloud infrastructure. Traders should also watch for any updates on Amazon AWS operational issues in the Middle East and their potential impact on cloud service availability. The interplay between AI enthusiasm and geopolitical risks will remain a key theme driving tech sector volatility and opportunities.