Tech Sector Focus Amid Earnings and Market Shifts
This week, the tech sector remained a central point of interest for investors as they closely monitored the latest earnings reports. Major players such as Alphabet (GOOG) and Intel (INTC) released their quarterly results, drawing significant attention from market analysts and traders alike.
The Nasdaq Composite (COMP:IND) closed down 0.6% on Friday, reflecting a broader selloff in large-cap technology stocks. This decline came amid heightened tensions in the Middle East and new tariffs imposed by the Trump administration, which added to investor concerns.
Despite these challenges, the Technology Select Sector SPDR Fund (XLK) managed to gain 1.5% during the week, showing resilience in a volatile market.
Top S&P 500 Technology Gainers and Losers
Here are the top performers and underperformers in the S&P 500 technology sector over the past week:
Top Gainers:
* Super Micro Computer (SMCI) +24.48%
* Dell Technologies (DELL) +10.39%
* Western Digital (WDC) +8.92%
* Teradyne (TER) +8.55%
* Micron Technology (MU) +8.48%
Top Losers:
* CrowdStrike (CRWD) -9.76%
* Palo Alto (PANW) -9.73%
* Oracle (ORCL) -9.03%
* Uber Technologies (UBER) -9%
* Palantir (PLTR) -7.13%
Key Tech Headlines of the Week
Several major developments shaped the tech news landscape this week, including:
Alphabet Raises Capex Forecast for 2026
Alphabet (GOOG) (GOOGL) saw its stock drop nearly 7% on Thursday after reporting tepid capital expenditure and missing operating margin expectations. Despite beating revenue and earnings forecasts, with an 82% increase in cloud revenue to $24.8B, the company reported negative free cash flow of $5.9B for the quarter ended June. Additionally, Alphabet raised its 2026 capital expenditure guidance to $195B-$205B, up from the previous forecast of $180B-$190B.
Intel’s Mixed Earnings Performance
Intel (INTC) delivered second-quarter results that exceeded Wall Street’s expectations, driven by strong demand for CPUs in AI. However, the chipmaker’s stock fell nearly 8% on Friday, erasing gains from the post-earnings rally.
IBM Maintains Positive Outlook
Analysts maintained a positive view of IBM (IBM) following better-than-expected guidance after preliminary second-quarter results led to a 25% drop in its stock price.
AMD and Anthropic Sign Major Deal
AMD (AMD) and Anthropic (ANTHRO) have entered into a chip and investment deal worth billions of dollars. As part of the agreement, Anthropic will deploy up to 2 gigawatts of AMD’s MI450 AI accelerators starting in the first half of 2027. The deal also includes AMD investing up to $5B in Anthropic.
Super Micro Highlights Strong Gross Margins
Super Micro Computer (SMCI) saw its shares rise nearly 20% after providing fourth-quarter preliminary guidance and raising its gross margin outlook. The company estimated GAAP and non-GAAP gross margins between 15% and 17%, significantly higher than its previous guidance of 8.2% to 8.4%.
Other Notable Developments
- Oracle (ORCL) secured a 10-year contract with the U.S. Department of War for software services, potentially worth $6.99B.
- Susquehanna reduced Sandisk’s (SNDK) price target to $3,050 from $3,250 while maintaining a Positive rating.
- Micron (MU) gained 12% on Tuesday, supported by a bullish note from Bank of America and a broader rally in memory and storage stocks.
Additional Insights
Other key topics included:
* State Street Technology Select Sector SPDR ETF
* Hyperscalers’ potential impact on the market
* GPU depreciation risks for the software sector
* Tech sector remaining in a neutral stance
* Q2 earnings spotlighting overbought stocks
* Equity ETFs continuing to attract significant inflows, with $140B flowing into funds in June.
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