New York, Feb 13, 2026, 13:13 EST — Regular session
- Nvidia and Alphabet fell as investors stayed wary of AI megacaps
- Applied Materials surged after forecasting results above estimates
- Microsoft steadied as the FTC stepped up questions around AI and cloud bundling
AI stocks were split in early afternoon trading on Friday: Nvidia (NVDA) fell 1.5% to $184.16 and Alphabet (GOOGL) slid 0.8%. Applied Materials (AMAT) rose 9.0% to $357.87 after an upbeat outlook suggested chipmakers are still spending heavily to support AI.
Cooling U.S. inflation data gave the broader market some breathing room, but investors have been asking for proof that AI capex — short for capital expenditures, spending on things like data centers — will turn into profits. AI spending plans by the “Magnificent Seven” are projected at about $650 billion, and at 11:55 a.m. ET the S&P 500 was up 0.53% and the Nasdaq was up 0.32%, even as both headed for their sharpest weekly drop since November. “You’re discounting a lot of earnings streams that have to come to fruition,” Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management, said. (Reuters)
The selling started in software after Anthropic unveiled a legal AI plug-in and then spread to other sectors seen as vulnerable to automation, a Reuters report said. Barclays equity strategist Emmanuel Cau said investors were in “sell first think later” mode as they looked for the next industry to be squeezed. (Reuters)
Friday’s Consumer Price Index rose 0.2% in January and 2.4% from a year earlier, while core CPI — which strips out food and energy — rose 0.3% on the month, the Labor Department said. Electricity prices were up 6.3% year-on-year, reflecting data-center demand to power artificial intelligence. (Reuters)
Applied Materials said it expected second-quarter revenue of about $7.65 billion, plus or minus $500 million, and adjusted profit of $2.64 per share, plus or minus 20 cents, topping Wall Street estimates. Chief Executive Gary Dickerson called the outlook “fueled by the acceleration of industry investments in AI computing.” Morningstar analyst William Kerwin said he expected “a massive wafer fabrication equipment growth cycle” over the next three years. (Reuters)
Microsoft (MSFT) was up 0.3% at $403.18 even after Bloomberg News reported the U.S. Federal Trade Commission had asked rivals for information as it stepped up scrutiny of the company’s licensing and bundling of AI, security and identity software. Microsoft and the FTC did not immediately respond to requests for comment, according to a Reuters report. (Reuters)
Among other AI-linked names, Amazon (AMZN) edged up 0.4% to $200.43, while Advanced Micro Devices (AMD) added 1.4% and Palantir (PLTR) rose 2.8%. Broadcom (AVGO) slipped 0.4% and Meta Platforms (META) was little changed.
A day earlier, Wall Street sold off hard, with the Nasdaq down about 2% as investors dumped tech and transport stocks on AI disruption worries, Reuters reported. “We see this as a ‘prove it’ year for AI. We need to start seeing some return on investments,” Jack Herr, primary investment analyst at GuideStone Funds, said. (Reuters)
The next big test for AI chip stocks comes on Feb. 25, when Nvidia plans to report results and hold a conference call at 5 p.m. ET; CFO Colette Kress is set to post written commentary shortly after the results are released. Traders are likely to focus on guidance and whether orders keep up as customers decide how fast to build out data centers. (NVIDIA Newsroom)
But the setup is fragile. Core inflation is still running warmer than the headline number, and any rebound in bond yields can hit richly valued tech shares first; a cautious forecast from Nvidia would do the rest.
For now, investors are watching whether Friday’s rally in chip equipment names can hold into the close, and whether regulators add pressure on big AI platforms. Nvidia’s Feb. 25 report is the next clear date on the calendar.
