New York, Feb 27, 2026, 13:07 EST — Regular session
- Nvidia slipped for a second session, extending losses that began with a steep post-earnings drop just a day earlier.
- Tech shares took another hit, with fresh inflation numbers stoking rate concerns once again.
- Broadcom’s results are on deck, and investors are also eyeing next week’s U.S. jobs report for clues on the AI trade.
Nvidia gave up another 2.4% Friday, deepening its losses after a 5% tumble the day before, and the pain didn’t stop there—AI-focused tech names felt the pressure too. By late morning, the Dow had lost 1.22%, S&P 500 was off 0.66%, and the Nasdaq was in the red, down 0.99%. Reuters
Investors are rethinking AI’s rally just as inflation anxiety returns. January’s U.S. producer prices came in above forecasts, fueling doubts about stretched tech valuations after a rocky few weeks for the sector. “Inflation has reared its ugly head,” WEBs Investments CEO Ben Fulton said. Reuters
The hesitation is clear in fund flows. Investors put less money into global equity funds last week, with inflows sinking to a five-week low through Feb. 25, according to LSEG Lipper. Worries over mounting AI spending and the threat of shakeups are behind the pullback. Mark Haefele, UBS Global Wealth Management’s chief investment officer, pointed to “higher-than-expected” capital spending and intensifying competition as reasons investors are leaning “toward selectivity and diversification.” Reuters
Nvidia’s slip kicked things off, with shares dropping 4% to $187.6 on Thursday—even after solid earnings. That pullback weighed on chip peers like Broadcom and AMD. “The competitive picture is also shifting,” said eMarketer analyst Jacob Bourne, noting that customers are spreading out suppliers and cloud firms are putting more money into their own custom chips. Reuters
Nvidia’s numbers weren’t the problem. The company projected fiscal first-quarter revenue of roughly $78 billion, plus or minus 2%—topping the $72.60 billion average forecast from LSEG. Executives assured analysts they’ve lined up enough chip inventory and production capacity to satisfy demand well beyond the next several quarters. Still, when asked about sending more cash back to shareholders, CFO Colette Kress said Nvidia’s priority remains pouring money into the AI ecosystem. CEO Jensen Huang doubled down, saying the pivot to AI-centric computing “is not going to go back.” Reuters
Pressure is mounting around a basic issue: who gets paid, and on what timeline. Investors are now questioning if hyperscalers—the top-tier cloud providers—can actually turn their heavy data center outlays into profit, all while Nvidia and competitors scramble to secure future clients.
AI hype is cropping up in a few corners, often in isolated bursts rather than anything broad. Shares of Block shot higher after the company detailed job reductions linked to a sweeping AI integration effort. Dell also rallied, crediting robust gains in AI-server sales and increased cash returns. Still, these pops left the larger market mood untouched.
The downside’s not hard to see. Persistent inflation and prolonged high rates could hit pricey AI leaders with swift re-ratings. There’s another risk, too: if major clients pull back on spending, or move workloads onto their own chips—or to competitors—that earnings “beat” loses its edge.
Looking ahead to next week, Broadcom’s results are on tap, while the U.S. jobs report arrives March 6—both events likely to stir the debate over growth prospects and the trajectory for interest rates. Investors are still picking through the AI fallout, trying to distinguish “winners” from “victims,” according to Kristina Hooper, chief market strategist at Man Group. Reuters
