microsoft launches amazon while nvidia expands its platform

Key Takeaways

• On February 16, 2026, tech giants like Nvidia, Apple, and Alphabet lost billions in market value, with Nvidia down $89.67 billion, Apple $256.44 billion, and Alphabet $87.96 billion since early 2026.
• Investors are shifting focus, demanding clear, near-term profits from AI investments rather than just long-term potential.
• Amazon and Alphabet plan to spend a combined $380 billion on AI in 2026, with Alphabet investing $175-$185 billion and Amazon around $200 billion.
• OpenAI is planning an initial public offering (IPO) as early as Q4 this year and has hired the founder of OpenClaw.
• AI poses a threat to traditional financial stocks, including wealth management firms (e.g., Charles Schwab) and insurance brokerages (e.g., Marsh McLennan), by making fee-based services less competitive.
• Booking.com is using a partnership with ChatGPT to boost bookings and operational efficiency, aiming for a stock rebound despite a 27 percent drop.
• Qualys reported strong Q4 and FY 2025 results, highlighting its AI-powered risk management platform and expanding its stock buyback plan to US$1.6 billion.
• Aligned launched "AI Highlights" to improve sales visibility, reduce manual follow-up, and streamline CRM for businesses.
• The "AI scare trade" has led to over $1 trillion in losses for software and service stocks this year, though some analysts believe the sell-off may be overdone.
• Investors can gain diversified exposure to AI through ETFs like AIQ (Global X Artificial Intelligence & Technology ETF), IGPT (Invesco AI and Next Gen Software ETF), and BAI (iShares A.I. Innovation and Tech Active ETF).

Tech Giants Lose Value as AI Investment Enthusiasm Cools

On February 16, 2026, major tech companies like Microsoft, Amazon, and Nvidia saw their market values drop. This decline shows a change in how investors think. They now want to see clear profits from AI investments soon, instead of just hoping for long-term gains. This shift comes after years of excitement about AI spending.

Top Tech Stocks Drop Billions Amid AI Spending Concerns

On February 16, top tech companies like Nvidia, Apple, and Alphabet lost billions in market value. Since early 2026, Nvidia dropped $89.67 billion, Apple $256.44 billion, and Alphabet $87.96 billion. Amazon also expects its capital spending to jump over 50% this year. Investors are now looking for quick profits from AI investments, rather than just long-term plans. This change in focus is causing a shift in the market.

AI Threatens Financial Stocks and Traditional Business Models

Seeking Alpha analysts are discussing how AI could negatively impact financial stocks. Wealth management firms like Charles Schwab and Raymond James, along with insurance brokerages such as Marsh McLennan and Aon, are seen as vulnerable. Data providers like Nasdaq and S&P Global also face risks. AI-driven tools could make traditional fee-based services less competitive, potentially reducing profits for these companies. Small banks may struggle to keep up with AI-powered digital banking.

Booking.com Stock Drops 27 Percent Can AI Help Rebound

Booking.com's stock has fallen by 27 percent. However, its connected-trip business is growing over 20 percent, which helps improve profits and cash flow. The company also partnered with ChatGPT to boost bookings and make operations more efficient. A rebound for the stock depends on whether these AI and product efforts can succeed despite rising competition and economic challenges. Booking Holdings is using its connected-trip plan and AI to change how people book travel.

Qualys Reports Strong Earnings and Boosts AI Security Platform

Qualys QLYS announced its fourth quarter and full year 2025 results, meeting revenue goals and showing higher profits. The company highlighted its AI-powered risk management platform and growing sales through partners. Qualys also expanded its stock buyback plan to US$1.6 billion. Despite these positive results, the stock's recent growth has slowed. Analysts believe Qualys is undervalued, with a fair value of $143.24 compared to its current price of $104.91. Its new cloud-native risk operations center and Agentic AI platform are expected to drive future revenue and earnings growth.

Amazon and Alphabet Boost AI Spending to $380 Billion

Amazon and Alphabet plan to spend a massive $380 billion combined on AI in 2026. Alphabet will spend between $175 billion and $185 billion, while Amazon will spend about $200 billion. This huge investment could cause their free cash flow to drop close to zero or even become negative this year. Alphabet is borrowing $32 billion to help fund its data center expansion. Both companies expect these investments to lead to strong long-term profits, as seen by their growing backlogs for AI products. Despite a recent stock market sell-off, these companies are well-positioned for future growth.

OpenAI Hires Top AI Developer Plans IPO This Year

OpenAI has reportedly hired the founder of OpenClaw, a very successful independent artificial intelligence project. OpenAI is also planning to launch its initial public offering, or IPO, as early as the fourth quarter of this year. This move could be good news for companies like Microsoft, Oracle, and Coreweave. These companies need OpenAI's IPO to do well.

AI Scare Trade May Be Overdone Says Market Analysis

US markets are closed for Presidents Day, but European markets are up and gold is holding steady. The "AI scare trade" has caused over $1 trillion to be lost from software and service stocks this year, targeting logistics, wealth management, and insurance firms. However, some believe this sell-off in tech stocks might be too extreme. While AI is powerful, it still needs human input, marketing, and sales teams to be effective. This market reaction has brought US tech firms like Salesforce to more reasonable valuations, suggesting they could become a bargain once the AI fear subsides.

Aligned Launches AI Highlights to Improve Sales Visibility

Aligned has introduced a new feature called AI Highlights to help businesses with sales visibility. This tool aims to reduce manual follow-up tasks and make customer relationship management easier. It also gives sales managers a clearer view of many deals at once. This new AI-assisted feature could make Aligned more valuable in the sales software market. If many sales teams use it, AI Highlights could help Aligned keep customers and stand out from other companies.

Top Three AI ETFs to Consider Investing in for 2026

For 2026, three Artificial Intelligence ETFs are recommended for investment: AIQ, IGPT, and BAI. The Global X Artificial Intelligence & Technology ETF (AIQ) invests in companies using and developing AI, including top holdings like Nvidia and Microsoft. The Invesco AI and Next Gen Software ETF (IGPT) focuses on core AI technologies like semiconductors and software, with top stocks such as Micron and Broadcom. The iShares A.I. Innovation and Tech Active ETF (BAI) invests broadly in AI across various sectors and can adapt to new leaders. These ETFs offer a way to invest in AI with less risk than buying individual stocks.

Sources

• Tech Stock Decline 2026: Microsoft, Amazon, Nvidia Lose Value Amid AI Spending Scrutiny - News and Statistics
• Big tech stocks lose billions as AI spending fears hit valuations
• SA Asks: Which financial stocks could be hit hard by AI?
• Booking.com Stock Is Down 27% -- Can Connected-Trip Growth and AI Integration Drive a Rebound?
• Assessing Qualys (QLYS) Valuation After Earnings Beat And AI Security Adoption Update
• This Key Metric for Amazon and Alphabet Will Take a Huge Hit in 2026 Thanks to Massive AI Spending. Here's What It Means for Investors.
• OpenAI Recruited the World’s Hottest AI Developer. It Could Help These Stocks.
• The week ahead: Key inflation readings and why the AI trade could be overdone
• Aligned Targets Sales Visibility Challenges With AI Highlights Feature
• AIQ, IGPT, BAI: 3 Artificial Intelligence (AI) ETFs Worth Investing in 2026