Summary of Nvidia, Software Earnings, and Berkshire's HALO

Author: Ruben Dalfovo, Investment Strategist

Date: February 23, 2026

Key Takeaways

• Nvidia serves as a key indicator of sustained AI spending.
• Software earnings will test pricing power as AI transforms products into features.
• Berkshire's HALO strategy offers stability in a volatile tech environment.

Market Sentiment

The current market is in a "prove it" mood, where excitement around artificial intelligence (AI) is tempered by a focus on financial realities. Investors are shifting their attention from visionary potential to practical questions about who will pay for AI technologies, how much they will pay, and for how long.

Company Insights

Nvidia: The Receipt Printer

Nvidia, a leading supplier of graphics processing units (GPUs), is crucial for assessing the demand for AI infrastructure. The primary concern is whether large cloud service providers will continue their capital expenditures following a robust data center build-out. A slowdown could lead to a shift in market expectations from "amazing" to "merely excellent." Key indicators to watch during Nvidia's earnings call include:

• Demand visibility: Are customers still actively purchasing?
• Pricing power: Is there a shift towards higher-value systems?
• Customer sentiment: Are clients optimistic or cautious about future spending?

Software Sector: Proving Value

Software-as-a-service (SaaS) companies face challenges as AI can enhance their offerings but also commoditize them by integrating features into broader platforms. This week’s earnings from companies like Workday, Salesforce, Snowflake, and Intuit will be critical in determining whether they can maintain pricing power. Key metrics to evaluate include:

• Net revenue retention: Are existing customers increasing their spending?
• Management's ability to articulate pricing power: Can they clearly state, "we can charge for this"?

Berkshire's HALO: Stability in Uncertain Times

Berkshire Hathaway's HALO strategy, which stands for heavy asset, low obsolescence risk, focuses on businesses with enduring value derived from physical infrastructure and regulatory frameworks. The upcoming earnings report on February 28, 2026, will be significant as it marks the first under new CEO Greg Abel. The connection to AI is practical, as AI infrastructure requires stable resources like power and logistics, making HALO a potential safe haven during periods of market volatility.

Risks to Monitor

Investors should be aware of several risks:

• Nvidia may confirm strong demand but indicate that supply is catching up, which could pressure pricing.
• Software companies might face pushback on price increases, leading to weaker renewals or increased discounting.
• Berkshire's HALO strategy could underperform if the market shifts back to a risk-on sentiment.

Investor Strategy

Investors are advised to use earnings reports to assess demand and pricing power rather than chasing short-term market movements. It is essential to differentiate between AI enhancing customer offerings and AI replacing existing products. A balanced approach across chips, software, and infrastructure is recommended, as each can perform well under different AI scenarios.

Conclusion

The ongoing evolution of AI investment is transitioning from theoretical potential to tangible budgeting. The critical questions now revolve around financial backing: who pays for AI technologies, how much, and for how long? Nvidia's performance will provide the clearest indication of demand, while software companies must demonstrate that AI enhancements can be monetized rather than bundled for free. Berkshire's HALO strategy offers a contrasting sense of security with its focus on long-lasting assets.