New York, Feb 5, 2026, 09:34 (EST) — Regular session
- Another round of selling hit AI-related tech, pulling chip stocks down as investors grow wary about when high spending will actually lead to profits.
- Up next: another batch of Big Tech earnings and key U.S. data that could shake up yields and growth-stock prices.
Nvidia shares slipped roughly 3.3% to $174.19 in early Thursday trading, deepening the pullback seen in AI-related stocks this week.
This shift is significant since Nvidia’s stock now acts as a rapid barometer for AI expansion. Growth-focused sectors also took hits: the Nasdaq-tracking QQQ fell roughly 1.8%, while the semiconductor ETF SMH dropped close to 4%. By comparison, the S&P 500’s SPY saw a more modest decline.
Some of the selling stems from a sharp drop in software and data stocks, triggered by worries investors have about new “agent” tools potentially automating white-collar jobs. Reuters noted that Anthropic introduced plug-ins for its Claude Cowork agent late last week, fueling ongoing debate about which firms AI benefits—and which it disrupts. (Reuters)
The chip sector took a hit amid the debate. Nvidia dropped 3.4% Wednesday, with traders uneasy about its high valuations. AMD plunged 17% after a quarterly revenue forecast that rattled investors, according to Reuters. “The market is suddenly skeptical and concerned,” said Argent Capital portfolio manager Jed Ellerbroek to Reuters. (Reuters)
Thursday’s spotlight remained on spending. Alphabet announced plans to double its capital expenditures this year, keeping investors focused on how quickly Big Tech can turn AI investments into profits. “The result is a move away from blind optimism,” said Russell Shor, senior market analyst at Tradu, in a Reuters report. Amazon’s earnings, due after the close, will be closely watched for any clues on AI spending, alongside job-openings data set for release later in the day. (Reuters)
Nvidia’s top brass have pushed back against the notion that advances in AI spell trouble for traditional software. CEO Jensen Huang labeled concerns about AI replacing software as “illogical,” Reuters reported earlier this week. Still, investors kept pulling back from high-priced tech stocks. (Reuters)
Some on Wall Street say the selloff doesn’t quite add up. Bank of America analyst Vivek Arya pointed out in a note that the market’s outlook feels “internally inconsistent.” He argued it’s tough to reconcile weak AI returns with widespread AI adoption that should be devastating for legacy software. (MarketWatch)
Chip stocks slipped Thursday, deepening the risk-off mood: AMD plunged roughly 17%, Broadcom dipped close to 4%, and Micron slid about 9.5% in early trading.
This trade can flip fast. Nvidia usually gets a boost when Big Tech doubles down on AI infrastructure and earnings confirm steady demand and pricing. But if spending starts to plateau, the stock’s multiple can shrink sharply.
Nvidia investors have their sights set on the upcoming earnings report. The company plans to reveal its fourth-quarter and full-year fiscal 2026 results on Feb. 25. Results are expected to drop before the call, with CFO remarks available ahead of the webcast. (NVIDIA Investor Relations)
