Stock Market Can't Hold Key Levels Amid AI Concerns; Nvidia Tumbles Despite Strong Earnings: Weekly Review

The stock market retreated for the week amid investor fears about AI demand and disruption, even though those two concerns are somewhat contradictory. The Dow Jones and S&P 500 lost, regained and lost its 50-day line while the Nasdaq fell back from that key level. Nvidia (NVDA) tumbled despite booming growth and guidance in another week of big earnings winners and losers. Novo Nordisk (NVO) sold off on obesity drug trial data.

Software try to bounce during the week, with Snowflake (SNOW), Salesforce (CRM) and Workday (WDAY) beating earnings views. But AI disruption fears hit the sector on Friday.

Treasury yields tumbled, even amid hot PPI inflation data.

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Stock Market

The major indexes fell modestly for the week, but finished poorly while suffering technical damage. The Dow Jones and S&P 500 lost, regained and lost 50-day line support. The Nasdaq hit resistance near that level. The small-cap Russell 2000 also fell, but held its 50-day. Nvidia (NVDA) delivered accelerating growth that easily beat views and guided higher, but the AI giant still tumbled after results, weighing on AI infrastructure firms. Software stocks tried to bounce, but AI disruption fears returned late in the week. The 10-year Treasury yield fell back below 4% while crude oil rose in a volatile week amid U.S.-Iran talks

Nvidia Beat Fails To Impress

Nvidia (NVDA) delivered a knockout beat-and-raise report for its fiscal fourth quarter. But Nvidia stock fell on continued worries about the durability of the AI data center market. Nvidia’s earnings jumped 82% year over year while surged 73% to $68.13 billion, both another quarter of accelerating growth. For the current fiscal Q1, Nvidia sees sales rising 77% to $78 billion. The next potential catalyst for NVDA will be the company’s upcoming GTC conference. In a keynote speech on March 16, CEO Jensen Huang will outline Nvidia’s technology road map, including its recent Groq acquisition.

Novo Nordisk’s Weighty Problem

Novo Nordisk (NVO) crashed to its lowest level in nearly five years after saying its next-generation obesity shot, CagriSema, proved less effective than Eli Lilly’s tirzepatide in a head-to-head study. Over 84 weeks, CagriSema recipients lost up to 23% of their body weight, vs. 25.5% with tirzepatide, which Lilly sells as obesity treatment Zepbound. When examining all patients, regardless whether they properly adhered to the study’s outline, the CagriSema group lost up to 20.2% of their body weight, compared with a 23.6% loss for the tirzepatide group. Lilly stock rose slightly.

Biotechs Are A Mixed Brew

Biotech companies offered up a mixed bag of fourth-quarter reports and news. Vir Biotechnology (VIR) flew almost 28% on Tuesday after inking a deal with Astellas Pharma to codevelop and co-market a prostate cancer treatment. Ionis Pharmaceuticals (IONS), on the other hand, skidded more than 5% on light sales guidance for 2026. Arcutis Biotherapeutics (ARQT) and Axsome Therapeutics (AXSM) put up strong beats for their bread-and-butter drugs. Sales of Arcutis’ Zoryve, a treatment for skin conditions, grew 84% year over year, while revenue from Axsome’s antidepressant, Auvelity, swelled 74%. Arcutis rose strongly for the week while Axsome tumbled. Globus Medical (GMED) made a bullish move after being earnings views and raising its profit outlook.

Nuclear Plays

It was a busy week for nuclear and utility-related companies. S&P 500 nuclear leader Constellation Energy (CEG) reported better-than-expected Q4 results, with EPS down 6% while sales increased 13% to $6.07 billion. The company did not provide guidance for 2026. Separately, fellow utilities play, NRG Energy (NRG) also topped Q4 profit expectations and is trading right around a buy point. Vistra (VST) had mixed Q4 results but gave bullish guidance, while Talen Energy (TLN) beat revenue views. Both were little changed for the week.

Meanwhile, BWX Technologies (BWXT), the U.S. Navy’s main nuclear reactor supplier, also beat fourth-quarter earnings and revenue along with topping expectations with its 2026 outlook. Q4 EPS grew 17% with sales increasing nearly 19%.

Software Stocks Bounce

Snowflake (SNOW), Salesforce (CRM) and Workday (WDAY) rebounded solidly for the week amid a sector rebound even as the enterprise software giants gave some weak guidance. Snowflake earnings rose 7% while revenue climbed 30% to $1.28 billion, both beating Q4 views. The data analytics software maker guided up on Q1 and fiscal 2027 product revenue, but operating margin was a little light. Salesforce’s EPS popped 37%, beating, while a 12% revenue rise to $11.2 billion was in line. The software giant guided slightly lower on fiscal 2027 revenue, but did announce a $50 billion stock buyback. Workday earnings rose 28% while revenue climbed 14.5% to $2.532 billion, both topping. The human resources software maker guided current-quarter subscription revenue slightly below views.

Home Depot, Lowe’s Fall On Guidance

The S&P 500 home improvement retail giants both beat Q4 views but the stocks retreated from around buy zones. Home Depot (HD) reported adjusted EPS declined 13% to $2.72 and sales slipped 4% vs. a year earlier to $38.19 billion. Lowe’s (LOW) said EPS climbed 3% with revenue up 11% to $20.58 billion. Home Depot gave a cautious outlook for fiscal 2027 while Lowe’s guided low.

Solar Stocks Mostly Cloudy

SolarEdge Technologies (SEDG) jumped as earnings leaped 96% with sales growth accelerating to 71%. Solar installer Sunrun (RUN) delivered a surprise profit with sales more than doubling, but shares dived on guidance. First Solar (FSLR), Shoals Technologies (SHLS) and Array Technologies (ARRY) all missed on EPS and guided significantly lower, sending their stocks tumbling.

Aerospace Plays Struggle

Aerospace companies reporting this past week generally retreated this past week. Rocket Lab (RKLB) traded lower Friday despite beating views, after the launch services provider delayed the first launch for its Neutron rocket until Q4. Rocket Lab also signed a multiyear launch deal with BlackSky Technology (BKSY) and introduced new solar arrays for space-based data centers. Heico (HEI) on Wednesday edged out Q4 EPS and sales views, but shares plunged on weak free cash flow. Drone maker Kratos Defense (KTOS) topped Q4 views on Tuesday, but shares fell as some weak guidance. KTOS fell further Friday after selling $1.2 billion in stock. But Astronics (ATRO) edged higher on its Q4 beat after initial tumble to the 10-week line.

Heavy Construction

Data center and mechanical construction services name Everus Construction (ECG) handily topped fourth-quarter expectations and guided above 2026 revenue forecasts. Q4 EPS grew 61% with revenue up 33% vs. a year ago. ECG stock gapped higher. Another data center builder, Primoris Services (PRIM) beat Q4 expectations even as profit fell 4.4% with revenue increasing 7%. Shares fell, but held above a buy zone. Separately, Sterling Infrastructure (STRL) easily beat Q4 views with a 78% EPS gain and 51.5% revenue rise, both showing yet another quarter of accelerating growth. Shares jumped to a new high, but reversed back to its buy point.

Stock Market News In Brief

Warner Bros. (WBD) deemed Paramount Skydance’s (PSKY) latest offer to be superior to the one from Netflix (NFLX). Netflix declined to keep fighting, and will pocket a $2.8 billion breakup fee. Netflix and Paramount jumped while WBD stock fell slightly.

Block (XYZ) said it’s slashing more than 40% of its workforce on Thursday, saying “AI tools” make that possible. Shares of the digital payments giant soared Friday while AI disruption fears revived for software makers.

OpenAI said Friday that Amazon (AMZN) invested $50 billion in a new funding round, along with $30 billion each from Nvidia and SoftBank.

FTAI Aviation (FTAI) reported a 28% EPS gain in Q4 with revenue up 32% to $662 million, but both missed views. However, FTAI guided up on 2026 adjusted EBITDA. Investors also remain bullish on the jet engine repair shop’s recent plans to turn jet engines into turbines for powering data centers.

Cava Group (CAVA) surged to a six-month high on better-than-expected Q4 results and upbeat guidance. The Mediterranean-themed restaurant reported a 20% EPS decline. Revenue rose 21%, slightly accelerating, though same-store sales were up just 0.5%. Store openings and stronger comps should buoy 2026 results.

Amer Sports (AS) reported an 82% EPS gain while revenue climbed 28%, both beating Q4 views. But the outdoor apparel and sports-equipment maker guided low on Q1 and 2026. Shares tumbled below a buy zone.

Keysight Technologies (KEYS) rose 19% while revenue rose 23%, both beating Q1 views. It guided higher on Q2 amid AI momentum. Shares soared to a new high.

Medline (MDLN), in its first earnings report since the Dec. 17 IPO, reported fourth-quarter sales grew 15% to $7.8 billion, beating estimates. Net income fell 38% to $180 million due to higher tariff and operating costs, including IPO expenses. The medical supplies distributor said Q4 adjusted EBITDA fell less than 1% to $805 million year over year. It sees 2026 organic sales growth of 8% to 9% and adjusted EBITDA of $3.5 billion to $3.6 billion.

Jazz Pharmaceuticals (JAZZ) reported a 10% sales to $1.2 billion while adjusted EPS climbed 2%, both beating. Guidance for 2026 sales came in “better than feared,” an analyst said in a report. Shares ran to a new high.

Advanced Micro Devices (AMD) announced a deal with Meta Platforms (META) to supply the Facebook parent with 6 gigawatts’ worth of data center AI processors. As part of the multiyear deal, Meta will receive warrants to buy 160 million AMD shares, or about 10% of AMD. AMD jumped on the news, but later slashed weekly gains.

Qnity Electronics (Q), a supplier of semiconductor manufacturing materials, smashed earnings estimates for the fourth quarter on higher-than-expected sales. The recent spinoff from chemical giant DuPont (DD) reported a 6% EPS decline while sales rose 8% to $1.19 billion in the December quarter.

ACM Research (ACMR) badly missed Q4 earnings expectations with a 55% tumble, sending its shares plunging. The chip-gear firm’s sales rose 9% to $244.4 million, slightly beating.

Dell Technologies (DELL) trounced estimates for its fiscal Q4 and with its outlook, thanks to massive AI data center sales. Dell stock jumped. Dell’s earnings soared 45% while sales increased 39% to $33.38 billion.

CoreWeave (CRWV) tumbled on a wider-than-expected loss while revenue surged 110% to $1.572 billion, slightly beating. The Nvidia-backed company increased its 2026 capital spending outlook amid a rising revenue backlog for artificial intelligence-related data center contracts. Also, CoreWeave said it expects operating margins of 8% at the midpoint of guidance, well-below estimates of 20%.

Cipher Digital (CIFR) rallied week after the bitcoin miner on Tuesday announced a rebrand amid strategic shift toward high-performance computing. Cipher missed Q4 estimates, despite a 42% jump in revenue. Another bitcoin miner-turned-AI play TeraWulf (WULF) retreated Friday after reporting widening losses and lower-than-expected revenue. Mara Holdings (MARA) rallied Friday after announcing plans with Starwood Capital to scale up into AI as well.

Applied Optoelectronics (AAOI) skyrocketed on strong results and guidance as it ramps up manufacturing of next generation optical networking devices. Applied Opto lost 1-cent a share vs. a 2-cent loss a year earlier vs. views for an 11-cent loss. Revenue climbed 34% to $134.3 million, slightly beating. Data center customers include Microsoft (MSFT), Amazon.com and Oracle (ORCL).

Zscaler (ZS) reported fiscal Q2 EPS jumped 29% while revenue climbed 26% to $$815.8 million, both comfortably beating. The cybersecurity firm also guided up on the current Q3.

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