Name: 'Fast Money' traders talk the tumble in Big Tech
Uploaded: 2026-02-04T04:29:08+00:00
Duration: 278 s

Speakers

Dan Nathan — Panelist, Fast Money

Carter Worth — Technician, Fast Money

Guy Adami — Trader

Summary

The Fast Money panel discussed the recent tumble in Big Tech and whether it signals a lasting crack in the AI trade. Speakers weighed software valuation and monetization risks against a rotation into value and other parts of the market. They also highlighted mixed semiconductor technicals, Broadcom's 200-day level, and concerns about AI capex sustainability.

Big Tech and AI-related stocks sold off, prompting debate over whether the AI trade is breaking.
One panelist said he nibbled at Microsoft despite monetization and deceleration concerns.
Software was described as expensive after trading above 30x EV/revenue with unresolved monetization questions.
Value stocks and the broader market were seen as benefiting from a rotation and economic expansion.
Semiconductors showed mixed technical signals, with lower lows in some names and strength near all-time highs.
Broadcom's distance from its 200-day moving average was flagged as a level to watch.
Panelists debated semis' boom-bust valuation risk and how long current AI capex can be sustained.
Carter Worth warned that linked euphoria in semis, software, and other loved assets could unwind.

Ideas

Dan Nathan Panelist, Fast Money 0:40

Software euphoria faces monetization risk

Software was priced for euphoria before the pullback, with the group trading north of 30 times EV/revenue, and there are unresolved monetization and growth questions even for mega-cap leaders like Microsoft, with Azure and Microsoft 365 decelerating.

Dan Nathan Panelist, Fast Money 1:03

Nibbling Microsoft despite monetization concerns

Despite concerns about Microsoft's ability to monetize AI and decelerating Azure and Microsoft 365 growth, he has been nibbling at the stock over the last couple of days, treating the pullback as a buying opportunity.

Dan Nathan Panelist, Fast Money 1:16

Rotation favors value over software

A healthy rotation is underway across the rest of the market; value stocks look more interesting relative to software, supported by positive breadth and signs of economic expansion in parts of the economy that had long underperformed.

Dan Nathan Panelist, Fast Money 1:45

Watch semiconductor technical divergence

Semiconductors are making lower lows in some cases, yet most semis are still rallying and the group is within 3% of all-time highs while sentiment feels terrible; this technical divergence and Broadcom's untested 200-day moving average are important to watch.

Dan Nathan Panelist, Fast Money 1:49

Watch Broadcom's 200-day level

Broadcom has not touched its 200-day moving average to the downside in several years, making that long-term technical level an important one to monitor as semis show lower lows.

Carter Worth Technician, Fast Money 2:17

Linked euphoria risks broad unwind

Semiconductors and software are structurally linked and complementary, so the euphoria in semis and other loved assets such as software, precious metals, and bitcoin could unwind together; if the air comes out of that linked trade, the market cannot endure it.

Guy Adami Trader 3:05

Semis face valuation and capex risk

Players may be tired of semis; the group is boom/bust and has not busted in a long time, so it could become a valuation play where investors move away, especially with questions about how long current AI capex can be sustained.

'Fast Money' traders talk the tumble in Big Tech

Summary

Ideas

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