By Rachel Schlueter
Publication Date: 2026-03-06 00:00:00
Key insights
- Morningstar analysts say positive fourth-quarter results show there’s plenty of room for AI trading, even as tech stocks lag.
- Strong demand for AI products and infrastructure contributed to a surge in technology revenue, but questions remain as to how long that can last.
- Software companies continue to see a mismatch between earnings growth and share price losses, and analysts are examining whether large-scale AI-related investments will deliver long-term returns.
Judging by tech stocks’ fourth-quarter earnings, the sector is doing well, and the artificial intelligence boom continues to drive growth. But those same reports, as well as recommendations from a number of major companies, have left investors with more questions than answers about the long-term viability of massive investments in AI.
The technology sector had a rocky start to the year, losing 5.56% after gaining 21.43% in 2025. Anthropic’s release of a new AI tool in February sent software stocks plummeting…
