NEW YORK, Jan 16, 2026, 14:32 ET — Regular session
- Micron drove gains in AI-related chips, with Nvidia and AMD posting modest rises in afternoon trading
- TSMC’s capex plan, along with its 2026 growth forecast, highlighted ongoing strength in data-center demand
- Washington’s fresh AI chip tariffs and changing China regulations remained in the background
Micron Technology jumped 5.6% to $355.58 in early afternoon trading on Friday, boosting a cluster of AI-focused chip stocks as investors returned to the data-center buildout play. Nvidia edged up 0.3% to $187.68, AMD climbed 1.5% to $231.36, and the iShares Semiconductor ETF rose 1.5%.
The bid follows Taiwan Semiconductor Manufacturing Co’s announcement of a bigger spending plan and a stronger growth outlook, tied to what it dubs an “AI mega trend.” TSMC predicts 2026 revenue will climb nearly 30%, with capital expenditures hitting between $52 billion and $56 billion, mainly for plants and chip-making equipment. CEO C.C. Wei warned the expansion demands careful management: “We’re also very nervous about it,” he admitted. Ben Barringer, head of technology research at Quilter Cheviot, described the results as “a very positive start” to tech earnings season. Reuters
Policy news has ramped up sharply. President Donald Trump slapped a 25% tariff on certain advanced AI chips this week — including Nvidia’s H200 and AMD’s MI325X — citing national security concerns, according to the White House. However, exemptions were made for chips and devices imported specifically for U.S. data centers and other select uses. The administration also mandated that chips headed to China must first pass through the U.S. for third-party testing. The tariff kicks in when these chips enter the U.S., the order revealed. Reuters
A White House official called the 25% tariff hike a “phase one” step, hinting at further moves linked to talks with other nations and firms. Reuters
On the corporate front, Nvidia grabbed headlines when SiFive announced plans to integrate Nvidia’s NVLink technology—those high-speed links that connect processors in AI data centers—into its RISC‑V chip designs. This move could enable RISC‑V CPUs to hook up with Nvidia’s AI chips at speeds on par with Intel- or Arm-based systems. SiFive CEO Patrick Little described it as a “multi-generational commitment,” but warned that products likely won’t reach the market until 2027 or later. Reuters
Nvidia is also at the heart of a separate Washington dispute involving China. Lawmakers and former officials slammed the Trump administration’s choice to permit shipments of Nvidia’s H200 chips to China under new rules, warning it could weaken the U.S. lead in AI. Matt Pottinger, who advised on Asia during Trump’s first term, told a congressional hearing the administration is headed down the “wrong track.” Nvidia pushed back, saying “America should always want its industry to compete” for approved commercial deals. Reuters
Broader markets showed mixed signals, though chip stocks lent support to the major indexes before the long weekend. Reuters highlighted gains from memory makers Micron and Seagate, adding that U.S. markets will be closed Monday for Martin Luther King Jr. Day. Earnings season is expected to pick up steam next week. Reuters
That said, this trade is crowded and fragile. If major cloud and data-center customers pull back on orders, or if tariffs and export rules change once more, those same stocks that offered refuge this week could quickly become the fastest way to raise cash.
In Europe, TSMC’s spending plans have already made their mark: ASML’s market cap surged past $500 billion following TSMC’s capex update. An investor in the Dutch company pointed out that AI demand is ramping up quicker than anticipated. “The market has underestimated again how large is the demand for AI,” said Han Dieperink, chief investment officer at Aureus, which holds shares in ASML. The company is set to release its Q4 earnings on Jan. 28, a date semiconductor watchers have marked. Reuters
