New York, Feb 5, 2026, 10:08 (ET) — Regular session.
Nvidia shares gained 0.8%, closing at $175.60 on Thursday. CEO Jensen Huang pushed back against fears that emerging AI will render software tools obsolete, labeling that notion “illogical.” Reuters
Investors have been unloading software and data-services stocks this week, spooked by fears that AI agents—tools that can handle tasks like fixing code bugs or drafting work—could squeeze fees and throttle growth. The S&P 500 software and services index has lost more than $800 billion in market value over the last six sessions. Societe Generale strategist Manish Kabra pointed out that the market is now questioning whether software’s famed “earnings-compounding nature” might be under threat. Reuters
Big Tech’s capital spending is under scrutiny. Alphabet projects its capex—covering servers, data centers, and networking equipment—to jump sharply, aiming for $175 billion to $185 billion in 2026. That’s a steep climb from $91.45 billion planned for 2025. CEO Sundar Pichai highlighted that AI investments are fueling “revenue and growth across the board.” Reuters
The broader market struggled to find footing. Wall Street opened in the red Thursday, shaken by Alphabet’s spending plans and Qualcomm’s weak forecast. The Nasdaq slipped 1.36% right at the opening bell, according to Reuters.
Early trading saw a split among AI-linked megacaps and chip stocks. Advanced Micro Devices ticked up roughly 1.3%, and Broadcom jumped around 5.1%. On the flip side, Microsoft dropped 2.6%, with Alphabet down 3.2%.
Tower Semiconductor announced it is ramping up silicon photonics production for 1.6-terabit (1.6T) data-center optical modules tailored to Nvidia’s networking protocols. Nvidia networking exec Gilad Shainer pointed to “the exponential growth of AI” as the key factor behind surging demand for faster network connections in AI infrastructure. Tower Semiconductor
Nvidia has been pushing its stack for industrial applications as well. In a February 3 statement alongside Dassault Systèmes, CEO Pascal Daloz highlighted AI’s shift beyond mere prediction and generation to systems that “understand the real world.” This is connected to a platform centered on “virtual twins,” digital replicas used to simulate products and factories. NVIDIA Newsroom
New agent products keep shaking up the market. On Thursday, OpenAI rolled out Frontier, a service aimed at helping firms build and manage AI agents. This move marks its latest bid in the enterprise space, where it goes head-to-head with Anthropic.
Yet this trade remains two-sided. Should investors see the AI push as a costly arms race with delayed returns, or if “agent” tools erode high-margin service jobs quicker than firms can respond, the shift away from expensive tech might accelerate further.
Nvidia will release its fourth-quarter fiscal 2026 earnings on Feb. 25. Investors will be watching closely for updates on data-center demand and networking growth — plus any evidence the AI arms race is continuing to drive actual orders, not just inflated budgets.
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