Ten large-cap stocks experienced significant declines during the week of February 23-27, 2026. Notable losers include First Solar (down 18.59% due to worse-than-expected Q4 results and below-estimate FY26 guidance), Zoom Communications (down 17.38% following mixed Q4 results and weak forward guidance), and Novo Nordisk (down 6.59% after announcing Chinese trial results and potential price cuts for Ozempic and Wegovy). Other major decliners include Donaldson, TopBuild, Corebridge Financial, Nu Holdings, KKR, Korea Electric Power, and Pure Storage.

SanDisk led the S&P 500 in 2025 with a 559% gain following its spin-off from Western Digital, driven by strong AI infrastructure demand for data storage. Historically, the top-performing S&P 500 stock in any given year returns an average of 78% the following year. However, Wall Street expects only 4% upside for SanDisk in 2026 as the NAND flash memory cycle may be peaking, with potential supply gluts ahead. The author recommends Pure Storage as a better alternative with 45% upside potential.

The article identifies Nvidia, Meta Platforms, and Pure Storage as the three best AI stocks to buy in January 2026. Nvidia is highlighted for its dominant GPU market position and vertically integrated business model with 32% upside potential. Meta is praised for leveraging AI to improve engagement and ad targeting with 29% upside. Pure Storage is recognized as a technology leader in enterprise storage with 45% upside potential as the all-flash array market grows.

Vertiv Holdings, an AI infrastructure company providing data center power and cooling solutions, has a 71% probability of being added to the S&P 500 in Q1 2026 according to prediction markets, significantly higher than competitors. The company has surged over 1,047% in less than three years with strong financial performance, including 29% year-over-year revenue growth and a robust $9.5 billion backlog.

The article highlights Amazon and Pure Storage as promising AI investment opportunities, emphasizing their strategic AI developments and potential for growth beyond traditional AI stocks like Nvidia and Palantir.

Cathie Wood's Ark Invest added positions in The Trade Desk, WeRide, and Pure Storage, focusing on tech stocks with potential recovery and growth despite recent market challenges.

Pure Storage reported strong Q3 2026 earnings with 16% year-over-year revenue growth, but the stock crashed 26% due to modest guidance and high valuation expectations.

Three data memory stocks - Western Digital, SanDisk, and Pure Storage - are outperforming Nvidia in 2025, driven by AI infrastructure demands, cyclical market resurgence, and strategic business initiatives.

Several tech and service companies saw significant stock gains last week, driven by strong quarterly earnings, strategic deals, and analyst upgrades.

The global storage systems market is projected to grow at a CAGR of 9.8% from 2025 to 2032, driven by the increasing data generation and rising demand for efficient data storage solutions across various industries.

Wall Street paused as rising Treasury yields and upcoming Nvidia earnings and Fed minutes weighed on sentiment. The S&P 500 slipped 0.2%, with technology and communication services sectors avoiding losses.

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