Squawk on the Street SOTS 2nd Hour: Nvidia's High Bar, How To Play Tech Volatility, & LIVE: IMAX & Zoom CEOs 2/26/26
Feb 26, 2026
Rich Gelfond, IMAX CEO, on record box office, global slate, and theatrical strategy. Ben Reitzes, tech research head, on semiconductors, AI infrastructure, and how to navigate tech volatility. They dig into Nvidia’s margins, sector rotations, and what corporate results mean for big tech and theatres. Short, fast-paced market and C-suite takeaways.
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Nvidia Beat Triggered A Sector Rotation
- Nvidia's earnings clarity made its demand and guidance transparent but catalyzed a large rotation from semiconductors into software instead of a sustained breakout.
- Michael Santoli noted the semiconductor vs software ETF spread reversed several percentage points after Jensen Huang's comments and the market sold semis to buy software today.
Market Skepticism About Nvidia's Long Runway
- Despite Nvidia's dominant fundamentals, investors remain skeptical about extrapolating current margins and free cash flow into a multi‑year runway.
- Mike Santoli compared the market's unwillingness to fully price repeat boom cycles to Apple's post‑iPhone era and questioned margin durability.
Software Had Overshot On The Downside
- Software had been deeply oversold, and small positive catalysts (earnings, buybacks) can produce outsized rebounds in that cohort.
- Keith Lerner said software underperformance reached extremes and rotation into beaten‑up names may continue even if software doesn't lead long term.