Market Update on Tech Stocks
Microsoft (NASDAQ: MSFT) is currently down about 30% from its all-time high, trading at price-to-earnings levels last seen in 2020, despite posting strong Q2 financial results for the fiscal year 2026. The company is leveraging its cloud computing business, Azure, for AI build-out but faces market skepticism about ROI from AI investments.
Broadcom (NASDAQ: AVGO) is experiencing a sell-off of approximately 20% in early 2026. Analysts project significant growth with an expected 53% revenue increase in 2026 and 39% in 2027 due to its custom AI chip division.
Nebius (NASDAQ: NBIS) reports rapid growth, expecting its annual run rate to rise from $1.25 billion by the end of 2025 to between $7 billion to $9 billion by the end of 2026, facilitated by an increase from 2 to 16 operational sites to meet rising demand in AI cloud services.
