US tech stocks wobble as Starbucks cuts software spend and Nvidia earns buy call

Starbucks announced a plan to develop its own artificial‑intelligence tools and cut up to $2 billion in software licensing costs, targeting applications from Microsoft and IBM. The news pushed Microsoft shares down about 2 % and IBM about 3 % on the afternoon of the announcement, while other software‑related stocks such as ServiceNow, SAP and Rheinmetall also fell.

In a separate development, Bank of America analysts reaffirmed a buy recommendation for Nvidia, citing a historically low valuation of roughly 18 times projected earnings and strong growth in its AI and semiconductor businesses. The analysts highlighted Nvidia’s 5.6 % price gain since the start of the year as modest compared with sector momentum and called the current price a compelling entry point.

Both stories illustrate the mixed forces acting on US technology equities, with cost‑cutting moves by a major corporate customer weighing on software providers, while optimism around AI‑driven chip makers continues to drive bullish analyst sentiment.