Weekly Tech Check: AI strength boosts ON Semi and Micron; HPE drags on cautious outlook

Technology stocks ended the week slightly lower as a mix of earnings updates, share offerings and financing news kept sentiment cautious. Companies across the sector announced new stock and warrant issuances, convertible note offerings and capital raises, while some AI-linked partnerships and product updates offered limited support.

The sector also saw continued regulatory and legal attention, adding to the cautious tone ahead of the earnings cycle. Several companies faced pressure from profit-margin concerns, valuation resets and selective downgrades. A reported collaboration between OpenAI, Broadcom and Arm on new AI chips underscored continued deal activity in semiconductor infrastructure; while big names that include Nvidia, TSMC and ASML stayed in focus amid export-control discussions and ongoing investment in advanced manufacturing.

Hardware suppliers tied to cloud and AI infrastructure held their ground on solid demand signals, while some software and services firms lagged amid lingering growth headwinds.

The Technology Select Sector SPDR Fund (NYSEARCA:XLK [https://seekingalpha.com/symbol/XLK]), which tracks major U.S. tech stocks, slipped [https://seekingalpha.com/symbol/XLK/charting] -0.23% this week, reflecting cautious sentiment among investors.

Let’s take a look at this week’s top gainers and losers in the tech industry:

Top weekly gainers:

ON Semiconductor (NASDAQ:ON [https://seekingalpha.com/symbol/ON]) +14.84% gained this week amid [https://seekingalpha.com/article/4828197-on-semiconductor-rich-2027-targets-imply-potential-capital-appreciation-prospect] optimism over its long-term growth outlook, aided by partnerships with Xiaomi in electric vehicles and Nvidia in data center power infrastructure.

KLA (NASDAQ:KLAC [https://seekingalpha.com/symbol/KLAC]) +12.61% rose on [https://seekingalpha.com/news/4503659-stifel-raises-price-targets-for-semiconductor-equipment-firms-on-strengthening-ai-outlook] strong margins and leadership in process control.

Micron Technology (NASDAQ:MU [https://seekingalpha.com/symbol/MU]) +11.44% gained over the week as analysts turned upbeat on AI-related memory demand, with Citi projecting [https://seekingalpha.com/news/4504787-micron-rises-as-citi-believes-dram-could-see-unprecedented-demand-from-ai] “unprecedented” DRAM growth and broader semiconductor sentiment lifted by target hikes [https://seekingalpha.com/news/4503937-array-of-semiconductor-stocks-stay-strong-on-ai-demand-as-cantor-ups-targets] from Cantor Fitzgerald.

Monolithic Power System (NASDAQ:MPWR [https://seekingalpha.com/symbol/MPWR]) +11.08% rose after brokerage upgrades [https://www.tradingview.com/news/stockstory:7c2796cf2094b:0-monolithic-power-systems-mpwr-stock-is-up-what-you-need-to-know/], citing strong revenue performance and growing market share in Nvidia’s Blackwell Ultra [https://developer.nvidia.com/blog/inside-nvidia-blackwell-ultra-the-chip-powering-the-ai-factory-era/?utm_source=chatgpt.com] AI chips.

Western Digital (NASDAQ:WDC [https://seekingalpha.com/symbol/WDC]) +9.34% amid [https://seekingalpha.com/news/4504779-seagate-western-digital-in-focus-as-wedbush-ups-price-targets-amid-strong-demand] strong demand, tight supply, and improving pricing and margins expected to extend through 2026 and possibly 2027.

Top weekly losers:

F5 (NASDAQ:FFIV [https://seekingalpha.com/symbol/FFIV]) –9.47% fell after the company disclosed [https://seekingalpha.com/news/4504281-f5-ffiv-discloses-cyberattack-linked-to-nation-state-threat-actor] a cyberattack by a suspected nation-state actor that accessed parts of its product development systems.

Arista Networks (NYSE:ANET [https://seekingalpha.com/symbol/ANET]) -7.14%

Hewlett Packard Enterprise (NYSE:HPE [https://seekingalpha.com/symbol/HPE]) -5.90% fell after its analyst meeting [https://seekingalpha.com/news/4504531-hpe-declines-after-holding-securities-analyst-meeting], as earnings guidance for next year missed expectations.

Datadog (NASDAQ:DDOG [https://seekingalpha.com/symbol/DDOG]) -3.70%

Fair Issac (NYSE:FICO [https://seekingalpha.com/symbol/FICO]) -2.96% amid [https://seekingalpha.com/article/4827820-fico-vs-equifax-the-credit-score-war-has-begun] investor caution over regulatory and competitive pressures on its credit scoring and data analytics business.

U.S. Tech-based ETFs to track: (NASDAQ:QQQ [https://seekingalpha.com/symbol/QQQ#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), (NYSEARCA:VGT [https://seekingalpha.com/symbol/VGT#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), (NYSEARCA:XLK [https://seekingalpha.com/symbol/XLK#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), (NASDAQ:SMH [https://seekingalpha.com/symbol/SMH#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), (NYSEARCA:IYW [https://seekingalpha.com/symbol/IYW#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), (NYSEARCA:FTEC [https://seekingalpha.com/symbol/FTEC#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), (NASDAQ:SOXX [https://seekingalpha.com/symbol/SOXX#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), (BATS:IGV [https://seekingalpha.com/symbol/IGV#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), (NASDAQ:CIBR [https://seekingalpha.com/symbol/CIBR#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), (NYSEARCA:IGM [https://seekingalpha.com/symbol/IGM#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), (NYSEARCA:IXN [https://seekingalpha.com/symbol/IXN#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]).

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