Tech Rebound Lifts Wall Street: Oracle, Broadcom, and Nvidia Lead Monday's Rally

The Monday session on February 9, 2026, demonstrated a robust rebound across major U.S. indices, with technology stocks serving as the primary catalyst for market recovery. The NASDAQ Composite outperformed with a 1.25% gain, reflecting the concentrated impact of AI-related semiconductor and enterprise software companies, while the S&P 500 advanced 0.69% and the Dow Jones Industrial Average rose 0.29% [0]. The Russell 2000 also posted a solid 0.81% gain, indicating a broadening of risk appetite beyond mega-cap technology names [0].

The technology sector ranked as the third-best performing sector at +1.60%, though notably it was outperformed by Utilities (+2.09%) and Basic Materials (+1.81%), suggesting a bifurcated market environment where defensive positioning persists alongside growth-oriented rallies [0]. Communication Services contributed positively with a 0.69% gain, while Healthcare and Consumer Cyclical sectors posted modest declines, highlighting the selective nature of the rebound.

emerged as the standout performer among the trio, recording a remarkable 9.66% gain that represented its largest single-day advance in recent months [0][2][3]. The primary catalyst was D.A. Davidson’s upgrade of Oracle from Neutral to Buy, with the analyst firm indicating that recent sell-offs had created a fundamental mispricing opportunity [2][3]. The upgrade emphasized renewed confidence in Oracle’s AI and cloud trajectory, particularly given the strategic implications of potential involvement with OpenAI and TikTok-related infrastructure partnerships [2]. Trading volume reached 49.5 million shares, approximately 73% above its three-month average of 28.6 million shares, signaling strong institutional participation in the rally [2].

contributed approximately 4% to the tech rally, driven by continued optimism surrounding Big Tech AI capital expenditure plans [3][4]. Projected AI spending by hyperscalers including Google, Amazon, and Microsoft is expected to reach $700 billion in 2026, positioning Broadcom as a key beneficiary through its role as a primary chip designer for Google’s Tensor Processing Units (TPUs) [3][4]. Wolfe Research forecasts Google could reach 7 million TPU units annually by 2028, representing substantial demand visibility for Broadcom’s custom silicon business [4]. The consensus price target of $460 implies approximately 38.5% upside from current levels, while Wolfe Research has recently upgraded the stock with a $400 price target [4].

advanced approximately 3%, supported by positive developments in its high-bandwidth memory (HBM) supply chain [5][6]. Reports indicate that Nvidia CEO Jensen Huang met with SK Group chairman Tony Choi on February 5, 2026, to discuss HBM4 supply arrangements and broader AI data center collaboration [5][6]. The proposed $10 billion AI venture by SK Group brings the Korean conglomerate closer to Nvidia’s ecosystem and addresses ongoing supply chain constraints that have limited GPU availability [6]. Jensen Huang reinforced bullish sentiment by telling CNBC’s “Halftime Report” that AI capital expenditures are justified given “sky high” demand for computing power [1].

Asian equities demonstrated positive correlation with Wall Street’s rebound, with the Nikkei 225 recording a strong 2.24% gain on February 9 and adding another 1.48% in subsequent trading [0]. The Japanese market’s tech-heavy composition, particularly in semiconductor and AI-related equities, enabled it to track U.S. counterparts higher. The Hang Seng Index showed a more muted response with a 0.17% gain, highlighting regional divergences that persist despite broader global risk appetite improvements [0].

The Monday rebound represented a meaningful technical recovery following an aggressive selloff that saw the Magnificent 7 stocks decline 4.66%—their worst weekly performance since April 2025 when U.S. tariffs roiled markets [1][2]. This volatility pattern underscores the elevated sensitivity of mega-cap technology stocks to shifts in investor sentiment regarding AI investment returns. The rapid rebound suggests investors are “reassessing” the durability of AI infrastructure demand rather than fundamentally questioning the investment thesis behind continued capital expenditure escalation [2].

From a technical standpoint, the three leading stocks present divergent pictures that inform the sustainability assessment of the rally.

trades approximately 28.9% below its 200-day moving average at $156.61, suggesting the analyst upgrade addressed genuine valuation dislocation rather than simply responding to oversold conditions [0]. The significant discount indicates that institutional investors may have overreacted to short-term concerns, creating a more substantial recovery opportunity. In contrast, trades 11.0% above its 200-day moving average at $343.94, maintaining a bullish technical posture that reflects sustained investor confidence [0]. Similarly, trades 11.7% above its 200-day moving average at $190.04, continuing its trend of consistent premium valuation relative to historical averages [0].

The observation that defensive sectors (Utilities at +2.09%, Basic Materials at +1.81%) outperformed Technology (+1.60%) during a growth-stock rally carries important implications for market structure analysis. Historically, outperformance of defensive sectors during periods of equity strength often signals investor caution regarding near-term economic outlook. The “cautiously optimistic” sentiment characterization appears warranted given this rotation pattern, suggesting investors are selectively allocating to growth opportunities while maintaining defensive positioning in their broader portfolios.

represents the most significant structural concern, as the rally’s dependence on three mega-cap technology stocks (Oracle, Broadcom, Nvidia) indicates continued concentration risk in the broader market. Should these leaders encounter negative developments, the ripple effects could disproportionately impact index performance and investor portfolios.

warrants careful monitoring, as projected AI infrastructure spending approaching $700 billion annually raises questions about return-on-investment timelines and potential oversupply scenarios. While company executives like Jensen Huang maintain confidence in demand durability, the market’s willingness to fund such substantial capital expenditures depends on visible progress toward profitable AI applications.

creates near-term uncertainty, as Wednesday’s delayed January jobs report and Friday’s CPI readings represent critical tests for the tech rally’s sustainability. Federal Reserve policy expectations and growth stock valuations will respond to this data, potentially triggering significant short-term volatility.

persist as ongoing considerations, particularly given the semiconductor industry’s reliance on complex global supply chains. The SK Group collaboration highlights dependencies that could be disrupted by geopolitical developments.

exist in Oracle’s significant discount to historical averages, particularly if the AI and cloud growth narrative proves sustainable. The D.A. Davidson upgrade suggests institutional recognition of this dislocation.

like Broadcom continue to benefit from structural growth trends in hyperscale computing, with visible demand pipelines extending through 2028 based on reported analyst forecasts.

in Nvidia and Broadcom above key moving averages suggests continued institutional interest, potentially supporting further price appreciation if AI sentiment remains positive.

The February 9, 2026 tech rebound represents a meaningful technical recovery following an aggressive selloff, with Oracle, Broadcom, and Nvidia leading the charge on analyst upgrades, AI spending optimism, and supply chain collaboration news. The D.A. Davidson upgrade to Oracle appears to have served as a catalyst for broader AI-themed optimism, though the rally’s durability will depend on upcoming economic data and continued visibility into AI infrastructure returns.

Key metrics and benchmarks to monitor going forward include projected Big Tech AI capital expenditures (targeting $700 billion in 2026), sector relative performance trends, individual stock technical positioning relative to moving averages, and upcoming economic indicators that will influence Federal Reserve policy expectations. The market’s bifurcated response—growth rallies alongside defensive sector outperformance—indicates a nuanced sentiment environment that warrants continued monitoring rather than categorical positioning.