New York, Feb 8, 2026, 12:07 EST — Market closed.
AI chip shares ended last week on a sharp rebound, with Nvidia up 7.8% on Friday as the Dow logged its first close above 50,000. Advanced Micro Devices rose 8.3% and Broadcom gained 7.1%, while Amazon fell 5.6% and software names such as CrowdStrike and Palantir climbed more than 4%; the Nasdaq still slipped 1.9% for the week. Ross Mayfield, an investment strategy analyst at Baird, said he sees “real demand for AI products” beneath the noise. (Reuters)
With U.S. markets closed on Sunday, the next session will test whether Friday’s rebound in AI-linked names was a reset or another bounce in a trade that has turned jumpy. Investors are drawing a harder line between the companies selling the picks and shovels and the companies paying for the build-out.
Investors are now weighing Big Tech’s planned AI spending binge — about $600 billion for 2026 — against profit pressure and a sharper threat to software and data firms. Andrew Wells, chief investment officer at SanJac Alpha, said the AI build-out trade “got too pricey” and needed a “de-risking” phase. Nvidia CEO Jensen Huang, speaking on CNBC, called demand “sky-high” and said the spending rise looked “appropriate and sustainable.” (Reuters)
Nvidia last traded at $185.41 after Friday’s close, up 7.9% on the day. AMD ended at $208.44, up 8.2%, and Broadcom closed at $332.92, up 7.1%. Amazon finished at $210.32, down 5.6%, while Alphabet fell 2.5% and Microsoft added 1.8%.
Investors’ focus is capex — capital spending on things like data centers, chips and network gear. Amazon projected more than a 50% rise in capex this year and put the tally at about $200 billion, up from $131 billion in 2025, Reuters reported. CEO Andy Jassy told investors AWS growth looks different “on a $142 billion annualized run rate” than at smaller rivals. (Reuters)
That spending pipeline is why chipmakers rallied even as some cloud stocks took hits. The market is betting the build-out keeps orders coming, even if it squeezes margins at the companies writing the checks.
Software and data-services groups sit on the other side of the trade, where AI could automate parts of what they sell. Traders have started to punish firms that look exposed to that risk, or simply priced for perfection.
But the split also leaves AI stocks vulnerable to fast reversals. If companies pull back on spending, or if projects fail to turn into sales, the most crowded AI chip names can drop hard.
With the market shut this weekend, traders head into Monday looking for any fresh read on budgets and demand, not just AI headlines. A quiet Sunday can still turn loud once futures reopen and investors start gaming the next catalyst.
The next big macro test is the U.S. Consumer Price Index for January, due Feb. 13 at 8:30 a.m. ET. CPI is a key inflation gauge and can swing interest-rate bets, which often drive valuations for tech and other growth stocks. (Bureau of Labor Statistics)
For AI chip shares, the next hard catalyst is Nvidia’s fourth-quarter results and outlook on Feb. 25, with the company set to webcast the report at 2 p.m. PT. Investors will look for any signal on data-center demand and whether the capex wave turns into real orders. (investor.nvidia.com)
