NEW YORK, Feb 17, 2026, 12:39 EST — Regular session
- Shares of Nvidia gained, but AMD and several big software stocks slipped during a turbulent midday session.
- Fresh concerns flared among investors that “agentic” AI might undermine software business models.
- Traders now eye U.S. PCE inflation data coming up Feb. 20, with Nvidia earnings due Feb. 25.
AI-related stocks moved in different directions Tuesday. Nvidia managed a slight gain, but software names took another tumble, dragging down the wider tech sector.
Following last week’s AI-fueled rout that battered software stocks and pushed Wall Street to its deepest weekly drop since mid-November, tech names continued to take a beating. “It’s an indiscriminate selling in all things tech,” said Art Hogan, chief market strategist at B Riley Wealth, adding that investors are zeroing in on which software offerings might get sidelined next. Reuters
Worries sharpened as the week kicked off, following Alibaba’s debut of its Qwen 3.5 model. The company claims it handles complex assignments independently and operates across both mobile and desktop apps. Traders wasted no time dubbing these tools “AI agents”—software handling multi-step jobs from just a few prompts—and are already debating who winds up on the losing end. Reuters
Nvidia (NVDA.O) edged up roughly 0.7% to $184.04. Advanced Micro Devices (AMD.O) dropped 2.7%, with Microsoft (MSFT.O) also retreating, down about 1.2%. The Invesco QQQ Trust (QQQ), which tracks the Nasdaq, slid 0.4%. SPDR S&P 500 ETF (SPY) dipped 0.1%.
Software and cybersecurity stocks bore the brunt. Salesforce (CRM.N) lost around 2.8%. Adobe (ADBE.O) shed close to 1.9%. CrowdStrike (CRWD.O) tumbled 5%, pulling the iShares Expanded Tech-Software ETF (IGV) lower by roughly 2.6%.
Nvidia aside, chip stocks traded in different directions. Broadcom (AVGO.O) gained around 1.9%. Intel (INTC.O) dropped nearly 1%. The iShares Semiconductor ETF (SOXX) hovered just about unchanged.
Rates remain a key variable for AI stocks—these high-flyers are sensitive to every shift in inflation and any tweak to Fed rate-cut expectations. Next up is the U.S. personal consumption expenditures (PCE) price index, set for release Feb. 20, per the Bureau of Economic Analysis schedule.
Chicago Fed President Austan Goolsbee left the door open to “several more” rate cuts before year-end—if inflation shows a firm move toward 2%. “We’ve got to see it” in the numbers first, he emphasized. Reuters
Nvidia’s next earnings report, a big one for AI watchers, lands Feb. 25 at 2 p.m. PT, according to the company’s investor site.
The risk picture isn’t hard to see. Should these latest “agent” systems crank up price competition in software, or if buyers hit pause to trial less expensive options, expect more earnings downgrades — and the AI story could stay choppy, chip strength or not.
Traders have their eyes on Friday’s PCE numbers for any hint on rates. After that, Nvidia’s guidance on Feb. 25 is up next—it’s the one that could shake up expectations for chipmakers and the AI-linked software crowd.
