Tech Sector Winners and Losers This Past Week
In the tech sector, the Technology Select Sector SPDR Fund ETF (NYSEARCA:XLK) managed a 1.74% gain despite a slide in semiconductor stocks. Meanwhile, Broadcom (NASDAQ:AVGO**) saw a significant rise of 8.5%, propelled by a 63% surge in AI revenue and a partnership with Open AI to produce its first artificial intelligence chip.
On the downside, some tech companies faced challenges. Block (NYSE: XYZ) and NVIDIA (NVDA) both experienced declines, with Block dropping by 7.23% and NVIDIA by 7.3%. The decrease in Block's share price was due to missed Q2 earnings expectations, sensitivity to economic conditions, and competition in the fintech space. NVIDIA's decline was attributed to fears of an AI bubble and disappointing data center revenue in its latest quarterly earnings.
Chipmakers and hardware-dependent industries are facing renewed concerns over cost increases and supply disruption due to announced tariffs aimed at encouraging domestic chip production. As a result, Texas Instruments (NASDAQ: TXN) and Super Micro Computer (NASDAQ: SMCI) both saw decreases, with Texas Instruments experiencing a 7.92% drop and Super Micro Computer an 8.10% decrease. The decline in Super Micro Computer's share price was due to a recent earnings report that missed expectations, a lowered Q1 FY2026 financial outlook, and intensified competition in the AI server market leading to pricing and margin pressures.
In contrast, Seagate Technology (NASDAQ:STX) and Western Digital (NASDAQ:WDC**) bucked the trend, with Seagate increasing by 9.15% due to AI-driven demand for high-capacity HDDs and Western Digital jumping 12.19% due to improved profitability and stability after spinning off its volatile SSD business into SanDisk and reporting robust HDD demand.
The U.S. economy created only 22,000 jobs last month, significantly lower than the estimated 75,000 additions. This weaker-than-expected jobs report has led to a shift in rate expectations, with markets now pricing in a higher probability of a Fed rate cut in Q4. This uncertainty may continue to impact tech stocks in the coming weeks.
The Nasdaq went up slightly during the week but lost some of those gains by the end. The S&P 500 stayed mostly the same. Among the tech-based ETFs to track include (NASDAQ: QQQ), (NYSEARCA: VGT), (NYSEARCA: XLK), (NASDAQ: SMH), (NYSEARCA: IYW), (NYSEARCA: FTEC), (NASDAQ: SOXX), (BATS: IGV), (NASDAQ: CIBR), (NYSEARCA: IGM), (NYSEARCA: IXN).
Analysts at Seaport Research downgraded Advanced Micro Devices (NASDAQ: AMD) to "Neutral" from "Buy" amid slow growth in its artificial intelligence (AI) business. This move may further impact AMD's share price, which had already experienced a 10.35% decline.
In the rapidly evolving world of tech, it's essential to keep a close eye on developments in the AI and semiconductor sectors, as these areas are likely to drive future growth and challenges for tech companies. However, at the time of writing, there is no public information about which technology companies earned or lost profits over the past weekend, or which companies in these sectors are particularly worth watching for future developments.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Stopping Osteoporosis Treatment: Timeline Considerations
- Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan
