AI Trends 11 February 2026 - 27 March 2026

Applied Materials shares fell 3.1% Thursday to $346.53, now down 12.5% from a Feb. 25 high after an AI-fueled rally. The company recently settled U.S. allegations of illegal exports to China for $252 million and warned that tighter export controls will further cut China sales in 2026. Applied had forecast strong second-quarter sales driven by AI demand. China revenue share has dropped from nearly 40% to the mid-20% range.

Lumentum Holdings shares rose 4.2% Thursday and gained another 2.6% after hours, last trading at $635.64. The move followed a Mizuho price target hike to $645 and new insider-trading disclosures. President Wupen Yuen sold 3,157 shares at $538 each under a pre-set plan. Investors now await updates at late-February conferences and the March OFC briefing.

U.S. stock markets were closed Monday for Presidents Day, pausing trading in AI-linked megacaps that have lost value this year amid doubts over costly AI infrastructure spending. Nvidia’s February 25 earnings are seen as the next key event for investors. In the last session before the holiday, Nvidia fell 2.2%, Alphabet dropped 1.1%, and Meta lost 1.5%. AI sector sentiment remains tense ahead of Tuesday’s market reopen.