Stocks Rise as Tech Gains Ground Amid Easing AI Fears

Nvidia Sold Its Stakes in These Firms. The Stocks Are Sliding.

FROM 9 minutes ago

Nvidia is backing out of some of its bets.

Shares of three AI-focused firms fell Wednesday following the news that Nvidia (NVDA) sold its stakes in the companies in the fourth quarter. Data center service provider Applied Digital (APLD) dropped nearly 10%, while drug developer Recursion Pharmaceuticals (RXRX) plunged 14% and driverless tech company WeRide (WRD) slipped close to 4%, before paring their losses later in the session.

A regulatory filing revealed Nvidia’s sales of the companies’ shares but didn’t specify the company’s reasoning. Nvidia declined to comment on the changes to its portfolio.

Nvidia’s stock climbed about 2%, bringing it back into positive territory for 2026 after a rough start to the year marked by lingering worries about an AI bubble. Read Investopedia’s full daily markets roundup here.

Nvidia’s latest 13F filing also revealed it dropped its shares of Arm (ARM), the chip designer and long-term partner it tried to acquire in 2020. Shares of Arm were up about 1% recently, building on gains earlier this month after the company posted better-than-expected earnings.

Nvidia added positions in struggling rival Intel (INTC), chip design software maker Synopsys (SNPS), and Finnish telecom Nokia (NOK). Synopsys shares climbed about 5% in recent trading, while Nokia shares added 1.5%. Intel shares were little changed.

While the investment in Intel shouldn’t come as a surprise, after Nvidia’s September announcement of a multibillion-dollar investment and partnership, rumors have continued to swirl lately about deepening ties and a possible foundry deal in the works.

Nvidia kept its holdings in AI cloud infrastructure providers CoreWeave (CRWV) and Nebius Group (NBIS) unchanged. CoreWeave and Nebius shares climbed about 5% and 4%, respectively.

–Kara Greenberg

Palo Alto Networks’ Deals Are Dragging on Its Profit Outlook. The Stock Is Falling

FROM 1 hr 3 min ago

Palo Alto Networks’ string of recent deals is hurting its profit outlook, weighing on its stock.

Shares of Palo Alto Networks (PANW) were down 6% to about $153 in recent trading after the cybersecurity provider’s full-year outlook disappointed. It was the worst-performing stock in the S&P 500 and Dow on a day when broader markets gained.

Palo Alto Networks said late Tuesday that it now expects adjusted earnings per share of $3.65 to $3.70 for the full fiscal year, down from its previous range of $3.80 to $3.90. The company is grappling with higher integration costs tied to its recent acquisitions, including its $25 billion purchase of CyberArk.

Morgan Stanley analysts trimmed their price target for Palo Alto Networks stock to $223 from $245 following the results. However, they maintained an “overweight” rating and called its post-earnings drop “overdone,” citing the company’s “compelling argument for AI as a tailwind.”

Meanwhile, analysts at Wedbush stood by their “outperform rating” and $225 target Wednesday, calling Palo Alto Networks “one of our favorite cyber names to own in 2026.” Though ratings are still in flux, most analysts tracked by Visible Alpha have stood by their bullish ratings for the stock.

Palo Alto Networks reported adjusted earnings per shares of $1.03 on a 15% year-over-year jump in revenue to $2.59 billion for its fiscal second quarter. Both figures came in above analysts’ estimates compiled by Visible Alpha.

With Wednesday’s slide, Palo Alto Networks shares have lost about 16% of their value since the start of the year.

–Aaron McDade

The S&P 500 Is Flat For the Year, But There Are Big Moves Below the Surface

FROM 1 hr 55 min ago

Wall Street is behaving a lot like Capitol Hill so far this year. 

As of Tuesday’s close, the S&P 500 was down 0.03% since the start of the year. That’s about as unexceptional as it gets, but it belies a lot of churn below the surface. 

According to a recent analysis by Bespoke Investment Group, 117 stocks in the S&P 500 have gained or lost more than 20% so far this year. Meanwhile, just 94 of the index’s components are up or down less than 5%.

As in Washington, D.C., “we’ve seen an increase in concentration at the extremes with nothing to show for it,” wrote Bespoke’s analysts in a note on Wednesday. 

The massive disparity in performance is pronounced in the tech sector, where more than 40% of stocks are either up or down more than 20% this year. Seventeen stocks are sharply higher, including AI “pick and shovel” plays like memory device makers Sandisk (SNDK) and Western Digital (WDC), up 150% and 70%, respectively. On the flip side are the dozen (mostly software) stocks that have been battered by concerns about AI disruption. They include Intuit (INTU) and ServiceNow (NOW), down a respective 40% and 30%.

Extreme moves are causing the capitalization-weighted S&P 500 to trail the equal-weight index by about 5.5 percentage points, the cap-weighted index’s worst relative performance since 1992, according to Bespoke. 

Wedbush Sees Big Gains for These Cybersecurity Stocks. Here’s Why

FROM 2 hr 57 min ago

It’s been a rough start to the year for the software sector, but one group of experts said they see big gains ahead for some beaten-down cybersecurity stocks.

As the use of AI spreads, companies could face growing risks that drive up demand for cybersecurity services, according to analysts at Wedbush, who named three stocks they see as likely “winners” in a note Tuesday.

One of them is CrowdStrike (CRWD), which Wedbush said remains a “gold standard of cybersecurity” despite the stock’s recent selloff. The shares are down about 13% year-to-date, with Wedbush’s $600 price target suggesting nearly 45% upside from Wednesday’s level around $420.

Wedbush also identified ZScaler (ZS) as a “premier name to own in the cyber space,” with a strong product pipeline and AI strategy. The analysts said they see the stock roughly doubling to $350 in the next 12 months.

Palo Alto Networks (PANW), which reported disappointing earnings after the closing bell Tuesday, rounded out Wedbush’s trio. The analysts said the company, which has sought to expand its offerings with several acquisitions recently, has seen its value proposition improve as companies look to consolidate vendors. Wedbush’s price target at $225 is about 45% above the stock’s recent level.

Investors could also get more insights when ZScaler reports next week on Feb. 26, with CrowdStrike scheduled to release its latest quarterly results on March 3.

–Aaron McDade

Moderna Stocks Rises After FDA Reverses Course on New Flu Vaccine Review

FROM 3 hr 50 min ago

Moderna (MRNA) stock rose 6% on Wednesday after the company said the Food and Drug Administration agreed to review its application for a new flu shot that regulators had previously refused to consider. 

Moderna on Wednesday said that, after meeting with the FDA, it had submitted an amended application for its new mRNA influenza vaccine. Federal drug regulators last week surprised investors when they refused to review Moderna’s application. Moderna is seeking full approval for adults 50 to 64, and accelerated approval for adults over 65. The review is expected to be complete by Aug. 5. 

“We appreciate the FDA’s engagement in a constructive Type A meeting and its agreement to advance our application for review,” said CEO Stéphane Bancel in a press release. 

With Wednesday’s gains, Moderna shares have risen nearly 60% since the start of the year. The stock got a boost last month after the release of encouraging data from a cancer clinical trial. 

In Buffett’s Last Quarter as CEO, Berkshire Slashed Amazon Stake and Sold More Apple

FROM 4 hr 40 min ago

Berkshire Hathaway (BRK.A)(BRK.B), the conglomerate formerly led by famed investor Warren Buffett, reduced its holdings in tech giants Apple (AAPL) and Amazon (AMZN) in the final quarter of 2025, according to a regulatory filing released Tuesday. 

Berkshire sold about 10.3 million shares of Apple, about 4% of the firm’s stake in the iPhone maker. Berkshire has been steadily trimming its stake in Apple—its largest position—since late 2023, though the pace of its sales has slowed. Berkshire’s stake, once worth about $175 billion, totaled about $60 billion as of Tuesday’s close. Shares were down about 0.3% in early trading Wednesday.

Berkshire made a bigger cut to its Amazon holdings, selling 7.7 million shares, or more than 75% of its stake in the e-commerce giant. The holdings, worth about $2.1 billion at the end of the third quarter, were valued at about $457 million as of Tuesday. Amazon stock rose 1.5% Wednesday morning.

Tuesday’s filing is the last Berkshire portfolio update overlapping with Warren Buffett’s tenure as chief executive. Buffett, who took over Berkshire in 1965 and built it into an insurance and investment behemoth worth more than $1 trillion, officially handed the reins over to current CEO Greg Abel when he retired at the end of last year.

Apple stock rose nearly 7% in the fourth quarter. Apple, unlike Big Tech peers such as Meta (META) and Alphabet (GOOG), is not spending hand over fist on AI infrastructure, and that became a tailwind for the stock when the AI rally wavered last quarter. Amazon shares rose 5% in the same period.

Futures Point To Higher Open as Tech Stocks Find Footing

FROM 5 hr 33 min ago

Futures contracts connected to the Dow Jones Industrial Average were up 0.3% in premarket trading on Wednesday.

S&P 500 futures rose 0.4%.

Nasdaq 100 contracts gained 0.5%.