Good Tuesday morning. Welcome to Squawk on the Street. I'm Sarah Eisen with Carl Kintania and David Faber.

We are live as always from post nine of the New York Stock Exchange. Technology stocks are tumbling today with major declines for the chips and AI-related names.

We'll talk with tech analysts Ben Wright says about the carnage right now. Plus, software is outperforming this morning as the money rotates in back into that sector.

We'll talk to the CEO of Twilio as they ring the bell to mark 10 years as a public company.

Also, SpaceX just turning positive after briefly dipping below its first trading price on IPO day.

What's behind all this volatility? That's ahead.

And it is one of the final Supreme Court opinion days of the session.

We're still awaiting a potential decision on President Trump's authority to fire Fed Governor Lisa Cook.

We'll bring you any headlines as soon as we get them.

But guys, tech is firmly in focus today, and there are questions about how much is overdone when it comes to the AI trade and the tech trade.

Barclays, interestingly, out defending the AI trade and the tech trade. Barclay is interestingly out defending the

rally, defending the tech trade, raising their forecast on the S&P 500, and just wanted to give you

a snapshot of what's happened with earnings expectations in this very hot sector. So at the beginning

of the year, going into the year, semiconductors were thought

to grow earning 66%. Today, the expectations for earnings growth this year is 127% for this

group. And then you see it trickle down from there, the tech hardware and storage, you know,

the Dells and the super micros, 39% earnings growth this year expected. And that's more

than double what we thought just going into the year. Obviously, software, it's been a story

the opposite direction. And so same with IT services, the extensions of the world. But that is a defense.

And they say, Barclay says, that earnings estimates for tech over the near term are not overly heroic.

So if you want to defend, you know, what's happening with the price action, you look at a chart like that guys.

But I guess, David, the question is how much is factored in, you know, and where does that demand level off, I guess?

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