New York, February 4, 2026, 10:21 ET — Regular session
- AMD slips as a weaker quarterly outlook keeps the spotlight on the Nvidia gap
- Anthropic’s latest tools are sparking renewed concerns about how quickly AI could upend software pricing
- Super Micro surges following an upgrade to its full-year revenue outlook, driven by strong server demand
Shares of Advanced Micro Devices (AMD.O) dropped roughly 15% to $206.47 in early Wednesday trading, deepening the slump for AI-related stocks after the chipmaker’s forecast missed lofty expectations.
The pullback comes as investors seek stronger evidence that heavy AI hardware investments are actually boosting profits, not just expanding capacity. “Overall results weren’t all that much beyond ‘inline’ without the China boost,” Bernstein analyst Stacy Rasgon noted. 1
Nervousness has crept into software stocks, as investors scramble to predict how AI agents—software that automates tasks across various tools—could impact fees and renewal rates. “The sector isn’t just guilty until proven innocent but is now being sentenced before trial,” J.P. Morgan analyst Toby Ogg noted, following the launch of Anthropic’s new legal AI tool and Claude Cowork plug-ins, which have intensified the disruption debate. 2
AMD projects first-quarter revenue around $9.8 billion, plus or minus $300 million, down from $10.27 billion in the December quarter. That forecast factors in roughly $100 million in AI chip sales to China. In the fourth quarter, those China sales hit $390 million, while data-center revenue climbed 39% to $5.38 billion. The company also expects an adjusted gross margin of 55%, a key profitability metric after direct costs. CEO Lisa Su told analysts she doesn’t anticipate being “supply-limited” as shipments of a new flagship AI server ramp up with OpenAI and other clients in the second half. 3
Nvidia’s Jensen Huang dismissed the notion that AI will render software tools obsolete. At a Cisco AI conference in San Francisco, he labeled that idea “illogical,” emphasizing that recent advancements still rely heavily on current software tools. 4
Nvidia (NVDA.O) dropped roughly 1.6%, while Broadcom (AVGO.O) slid around 2.4%. The iShares Semiconductor ETF (SOXX.O) also edged lower by about 1.6%.
Super Micro Computer (SMCI.O) jumped roughly 12.7% following an upgrade to its fiscal 2026 revenue forecast, now targeting at least $40 billion. The company is banking on sustained demand for AI-optimized servers. CFO David Weigand highlighted that “order strength remains strong” among major data-center and enterprise clients. 5
Software stocks took a hit as Salesforce (CRM.N) dropped roughly 2.9%, CrowdStrike (CRWD.O) tumbled 4.3%, and Atlassian (TEAM.O) slipped 4.2%. Adobe (ADBE.O) and Intuit (INTU.O) also fell, down 1.3% and 3.1% respectively. Thomson Reuters (TRI.TO) edged lower by about 0.6%.
Investors face the risk that the AI trade remains tight and unforgiving: a delayed server rollout, a shift in export licensing, or weaker pricing could easily outweigh positive news. For software companies, the downside is less clear — some of the selling might be premature, yet few are eager to bet against that uncertainty.
Nvidia is gearing up to release its Q4 fiscal 2026 earnings, with the conference call scheduled for Feb. 25. 6
