The tech sector has seen significant volatility, with AI-driven companies at the center of the storm. Nvidia’s ongoing investment in xAI, coupled with AMD’s high-profile deal with OpenAI, underscores the growing importance of AI infrastructure, even as stocks fluctuate. Companies like Oracle and IBM continue expanding their AI and cloud services, while tech giants like Microsoft and Meta are navigating regulatory hurdles, particularly around the EU’s Digital Markets Act.
Simultaneously, there’s a surge in the cryptocurrency and blockchain space, with firms like Bit Digital and Cipher Mining seeing market movement tied to Bitcoin production. Amid these shifts, AI’s influence remains a major catalyst.
The Technology Select Sector SPDR Fund ETF (NYSEARCA:XLK) which tracks major U.S. tech stocks, rose 0.9% this week, reflecting investor optimism amid market volatility, driven by strong demand in AI, cloud computing, and digital services.
Let’s take a look at this week’s top gainers and losers in the tech industry:
Top weekly gainers:
Advanced Micro Devices (NASDAQ:AMD) +30.5% surged helped by its high-profile AI infrastructure deal with OpenAI. The partnership is seen as a “major moment in the AI revolution,” driving optimism. Additionally, analysts have upgraded AMD, with Jefferies moving its rating to Buy.
Dell Technologies (NYSE:DELL) +6.98% rose after strong updates from its analyst day, including raised long-term revenue and EPS targets, driven by the ongoing AI boom and strong demand in the PC market.
Arista Networks (NYSE:ANET) +5.91%
Datadog (NASDAQ:DDOG) +4.56% rose after Wells Fargo gave it an Overweight rating and a $190 price target, pointing to strong growth from AI companies, even though there may be some loss from OpenAI.
Jack Henry & Associates (NASDAQ:JKHY) +3.61%
Top weekly losers:
Seagate Technology Holdings (NASDAQ:STX) -15.19% fell due to renewed U.S.-China trade tensions, a general tech market selloff, and lingering oversupply in mature memory segments.
Western Digital (NASDAQ:WDC) -12.10% fell partly due to broader market concerns triggered by rising U.S.-China trade tensions. The tightening of semiconductor export restrictions, especially on Nvidia chips, adds pressure on memory stocks amid fears of reduced demand.
KLA (NASDAQ:KLAC) -10.78% are down after the U.S. House committee scrutinized its sales of semiconductor equipment to China’s military-linked companies, raising fears of restrictions or bans on such sales.
Skyworks Solutions (NASDAQ:SWKS) -10.30% fell amid challenges due to its loss of business with Apple.
NXP Semiconductors NV (NASDAQ:NXPI) -10.28%
U.S. Tech-based ETFs to track: (NASDAQ:QQQ), (NYSEARCA:VGT), (NYSEARCA:XLK), (NASDAQ:SMH), (NYSEARCA:IYW), (NYSEARCA:FTEC), (NASDAQ:SOXX), (BATS:IGV), (NASDAQ:CIBR), (NYSEARCA:IGM), (NYSEARCA:IXN).