Major tech companies like Amazon, Microsoft, and Alphabet saw their stocks decline on February 12, 2026, as investors expressed concerns over their substantial spending on artificial intelligence. Alphabet plans to invest $180 billion in AI in 2026, while Amazon projects $200 billion for the same year. Microsoft reported spending $37.5 billion on AI in its second quarter, with its shares dropping over 16% year to date due to these high expenditures impacting profit outlooks.
Despite these concerns for big tech, companies providing the essential infrastructure for AI are thriving. Nvidia, Taiwan Semiconductor Manufacturing, and Applied Digital are experiencing increased demand for their chips and services. Nvidia, in particular, is viewed as a strong anchor holding for diversified portfolios, with Wall Street analysts showing nearly unanimous bullish sentiment and a $352 price target from Evercore ISI, suggesting 85% potential gains. Vertiv Holdings, a leader in power management and thermal cooling for AI data centers, also reported a 20% stock surge and a doubled backlog to $15 billion, with organic orders up 252% year over year.
Beyond infrastructure, Wall Street analysts are recommending specific AI software stocks. Shopify, an e-commerce leader, has an implied upside of 55% with a $162.50 target price. AppLovin, known for its Axon AI targeting engine, shows an even higher implied upside of 92% with a $710 target price. Nvidia CEO Jensen Huang believes the recent software stock sell-off, which saw the S&P North American Technology Software Index drop 30%, is illogical, highlighting opportunities for patient investors.
Apple Inc. is also making significant moves in AI and hardware. The company is preparing to launch the iPhone 17e with MagSafe and an iOS 26.4 beta featuring a more conversational Siri, expected the week of February 23. Analysts remain optimistic about Apple's growth, forecasting $1.43 earnings per share and $90.75 billion in revenue for its fiscal second quarter, with a consensus buy rating and a $187.50 price target.
However, the rapid AI transformation also presents risks. UBS analyst Matthew Mish warns that AI could disrupt credit markets, potentially leading to $75 billion to $120 billion in new defaults by the end of 2026, particularly affecting leveraged loans and private credit. Meanwhile, Oracle Corp. plans a massive $225 billion investment to build data centers for a $300 billion deal with OpenAI, underscoring the immense capital required for AI infrastructure. FAN Communications Inc. also revised its medium-term plan to boost AI investment, targeting 3.0 billion yen in operating profit by FY2027.
Key Takeaways
- Amazon, Microsoft, and Alphabet stocks fell on February 12, 2026, due to investor concerns over high AI spending, with Alphabet planning $180 billion and Amazon $200 billion in 2026.
- Microsoft spent $37.5 billion on AI in Q2, and its shares dropped over 16% year to date, reflecting worries about AI spending impacting profits.
- Nvidia, Taiwan Semiconductor Manufacturing, and Applied Digital are benefiting from increased demand for AI chips and infrastructure, with Nvidia recommended as an anchor holding.
- Wall Street analysts are bullish on Nvidia, with 94% recommending a buy or strong buy, and Evercore ISI setting a $352 price target, suggesting 85% potential gains.
- Vertiv Holdings, crucial for AI data center cooling, saw its stock surge 20%, with organic orders up 252% and backlog doubling to $15 billion.
- Apple is preparing to launch the iPhone 17e with MagSafe and an iOS 26.4 beta with an updated, more conversational Siri by late February.
- Wall Street recommends two AI software stocks: Shopify with a 55% implied upside ($162.50 target) and AppLovin (Axon AI engine) with a 92% implied upside ($710 target).
- UBS analyst Matthew Mish warns AI could cause $75 billion to $120 billion in new defaults in credit markets by the end of 2026.
- Oracle Corp. plans to spend $225 billion on data centers to support a $300 billion deal with OpenAI.
- FAN Communications Inc. revised its plan to increase AI investment, targeting 3.0 billion yen in operating profit by FY2027.
AI Spending Drops Big Tech Stocks, Boosts Chipmakers
Amazon, Microsoft, and Alphabet stocks fell on February 12, 2026. Investors worried about their high spending on artificial intelligence. Alphabet plans to spend $180 billion in 2026, Microsoft spent $37.5 billion in Q2, and Amazon plans $200 billion in 2026. However, three companies are set to benefit from this spending. Taiwan Semiconductor Manufacturing, Nvidia, and Applied Digital produce the chips and infrastructure needed for AI. These suppliers are seeing increased demand and growth as big tech invests heavily in AI.
Wall Street Recommends Two AI Software Stocks to Buy
The S&P North American Technology Software Index dropped 30%, entering a bear market due to AI concerns. Nvidia CEO Jensen Huang believes these worries are illogical, seeing opportunity for patient investors. Wall Street analysts recommend two AI stocks with high upside potential. Shopify, an e-commerce software leader, has a 55% implied upside with a $162.50 target price. AppLovin, known for its AI targeting engine Axon, shows a 92% implied upside with a $710 target price. Both companies are well-positioned to benefit from AI advancements.
AI Investment Frenzy Cools Smart Investors Diversify
The intense excitement around artificial intelligence investments is slowing down. Investors are now looking closely at cash flow, debt, and market position for AI companies. Microsoft shares dropped over 16% year to date as analysts worried about its high AI spending affecting profits. Nvidia, a leader in AI, is recommended as an anchor holding for a diversified portfolio. Nvidia's CFO Colette Kress confirmed strong demand for its products. The company trades at a reasonable forward price-to-earnings ratio of about 25.
Apple Readies iPhone 17e and Smarter Siri Updates
Apple Inc. is preparing to launch new hardware and artificial intelligence updates. The iPhone 17e with MagSafe is expected soon, offering faster charging and better magnetic alignment. An iOS 26.4 beta with an updated, more conversational Siri is coming the week of February 23. These updates keep Wall Street optimistic about Apple's future growth. Analysts expect Apple to report $1.43 earnings per share and $90.75 billion in revenue for its fiscal second quarter on April 27. The stock has a consensus buy rating and a $187.50 price target.
Apple Readies iPhone 17e and Smarter Siri Updates
Apple Inc. is preparing to launch new hardware and artificial intelligence updates. The iPhone 17e with MagSafe is expected soon, according to Bloomberg's Mark Gurman on February 9. An iOS 26.4 beta with an updated Siri is coming the week of February 23. These updates keep Wall Street optimistic about Apple's future.
Invest in AI Users Not Just Infrastructure Providers
The article suggests that companies building AI infrastructure may not be the biggest long-term winners. AI data centers are very expensive to build and their services can be hard to tell apart. Oracle Corp. is an example, planning to spend $225 billion to build data centers for a $300 billion deal with OpenAI. Instead, investors should focus on companies that use AI to boost their own efficiency and profits. These companies integrate AI into their operations, similar to how Amazon and Netflix used internet infrastructure.
Wall Street Unanimously Bullish on Nvidia AI Stock
Nvidia stock has seen a huge rise due to the artificial intelligence boom. Wall Street analysts show nearly unanimous bullish sentiment for Nvidia, with 94% recommending a buy or strong buy. Major cloud providers like Amazon, Microsoft, and Alphabet are increasing their AI spending, showing strong AI adoption. Taiwan Semiconductor Manufacturing also reported robust demand for AI chips. Evercore ISI analyst Mark Lipacis set a $352 price target for Nvidia, suggesting 85% potential gains. Nvidia trades at less than 25 times forward earnings, making it an attractive investment.
UBS Warns AI Could Disrupt Credit Markets
UBS analyst Matthew Mish warns that artificial intelligence could cause a "shock to the system" in credit markets. He expects $75 billion to $120 billion in new defaults by the end of 2026. This disruption will mainly affect the $3.5 trillion leverage loans and private credit markets. Software and data services companies, especially those owned by private equity, face pressure from AI. Mish notes that the AI transformation is happening faster than expected. A severe scenario could lead to a credit crunch and broad repricing of leveraged credit.
Wall Street Recommends Two AI Software Stocks to Buy
Nvidia CEO Jensen Huang believes the software stock sell-off due to AI is illogical. The software sector has seen a significant downturn, with many companies' stock prices falling. Despite this, Wall Street analysts identified two AI stocks with potential upsides of 55% and 92%. These stocks are considered attractive investment opportunities. They are expected to benefit from ongoing advancements in artificial intelligence technologies.
Vertiv Stock Soars on Strong AI Data Center Demand
Vertiv Holdings stock surged 20% this week, reaching a 52-week high. The company reported strong fourth-quarter results on February 11, with revenue up 23% and operating profit up 27%. Vertiv's organic orders jumped 252% year over year, and its backlog doubled to $15 billion. The company dominates power management and thermal cooling systems, which are crucial for AI data centers. Vertiv acquired Purge Rite Intermediate to enhance its liquid cooling systems. Management expects 27% to 29% organic sales growth and $6 earnings per share in 2026.
FAN Communications Boosts AI Investment in New Plan
FAN Communications Inc. revised its medium-term management plan for fiscal years 2025 to 2027. The company exceeded its FY2025 operating profit target, reaching 1.965 billion yen. It will now invest more heavily in artificial intelligence and capital efficiency. This strategic shift led to a slight decrease in the FY2026 operating profit target to 2.3 billion yen. FAN Communications aims to strengthen its competitive edge and long-term profitability. The company remains committed to its FY2027 goals of 3.0 billion yen in operating profit and at least 10% ROE.
Atrium Mortgage Investment Corporation Daily AI Signals
This report provides daily stock insights for Atrium Mortgage Investment Corporation, ticker AI:CA. It includes trading plans for February 12, suggesting a buy near 11.76 with a target of 12.09. A short position is suggested near 12.09 with a target of 11.76. AI-generated signals rate the stock as "Strong" for both near and long terms, and "Neutral" for the mid-term.
Sources
- Amazon, Microsoft, and Alphabet Stocks Plummet on AI Investments. These 3 Stocks Are Set to Win.
- Software Bear Market: 2 AI Stocks With 55% and 92% Upside to Buy Now, According to Wall Street
- The AI Frenzy Is Cooling. Here's What Smart Investors Should Do Now.
- Apple Inc. (AAPL)’s Upcoming Hardware and AI Updates Keep Street Optimistic
- Apple Inc. (AAPL)’s upcoming hardware and AI updates keep Street optimistic
- The AI Stocks to Sell Immediately... and the Ones to Buy Instead
- Should You Buy Nvidia Before Feb. 25? Wall Street is Providing a Nearly Unanimous Answer
- AI disruption could spark a ‘shock to the system’ in credit markets, UBS analyst says
- Software bear market: 2 AI stocks with 55% and 92% upside to buy now, according to Wall Street
- Why AI Stock Vertiv Zoomed to a 52-Week High This Week
- FAN Communications Revises Medium-Term Plan to Boost AI Investment and Capital Efficiency
- (AI) Daily Stock Insights
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