Investors are advised to buy AI and technology stocks during March weakness, as the Nasdaq defended its 200-day moving average amidst geopolitical tensions in the Middle East. The broader tech sector is projected to see significant earnings growth, with estimates for Q1 2026 Tech sector earnings climbing to 24%, up from 18% in mid-January.
Key players include ServiceNow (NOW), which reported a 22% increase in GAAP earnings to $1.67 per share, and Celestica (CLS), which saw a revenue growth of 29% in 2025, reaching $12.39 billion. ServiceNow is expected to grow its revenue by 20% in 2026, while Celestica is projected to achieve a revenue growth of 37% in the same year, doubling its revenue from 2025.
The outlook for AI infrastructure investments is strong, with AI hyperscalers slated to spend around $530 billion on capital expenditures this year, a significant increase from approximately $400 billion last year. Investors are encouraged to capitalize on current dips, as both companies show promising long-term growth and partnership strategies in the AI field.
