tech
February 9, 2026
Investors are growing wary of tech stocks. Wall Street says stay the course for this one reason
Many professionals are keeping their faith in the tech trade, despite last week's uneven action.
TL;DR
- Technology stocks led a three-day market decline last week.
- Wall Street strategists cite strong earnings growth as a reason to remain invested in tech.
- Q4 earnings growth for tech continued near 30%.
- Analyst consensus estimates project tech profit growth to slow but remain strong at 23% this year and 20% in 2027.
- Forward estimates for megacap growth and tech, including software, have increased.
- Software stocks were particularly affected by concerns over AI disrupting business models.
- The iShares Expanded Tech-Software Sector ETF tumbled nearly 9% last week and entered a bear market, down 22% year-to-date.
- The Nasdaq Composite and S&P 500 information technology sector also experienced losses.
- Recent volatility is seen as a 'necessary digestion of prior gains' with projections of record earnings growth in 2026 and 2027.
- Corporates are on pace for the fastest revenue growth since Q3 2022 and record high profit margins.
- Technology stocks are leading earnings growth with a 30.4% rise on 20.4% revenue growth.
- Market intelligence desks remain 'tactically bullish' on the broad market, suggesting software buying despite potential 'AI exhaustion'.
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