NEW YORK, Jan 21, 2026, 10:35 ET — Regular session
- Intel boosted AI chip stocks ahead of Thursday’s close and its quarterly earnings report
- Washington and Beijing’s dispute over AI chip exports continued to weigh heavily on Nvidia
- Traders are watching to see if AI-driven data-center spending remains steady as earnings season progresses
Intel shares jumped 9.7% to $53.25 in early New York trade on Wednesday, fueling a wider rally among AI chip stocks. AMD rose 6.5%, Nvidia edged up 1.5%, but Microsoft slid 1% and Oracle fell 2.3%. The iShares Semiconductor ETF gained 2.6%.
The group rebounded after a steep sell-off hit some of the most crowded “AI trade” stocks, as investors wrestled with tariff concerns and geopolitical risks. Speaking at Davos on Wednesday, President Donald Trump renewed his push to acquire Greenland but emphasized he wouldn’t resort to force. Art Hogan of B Riley Wealth said that stance “put a floor” under the recent drop, though he cautioned markets remain on edge over a possible trade-war escalation. 1
Intel is due to report its Q4 results after markets close Thursday, with investors watching closely to see if AI-driven growth in data centers is lifting demand for its server chips. The data-center division is expected to have expanded more than 30%, hitting $4.43 billion. Gabelli Funds analyst Ryuta Makino described the near-term outlook as “very well,” noting the chance of double-digit price hikes for server CPUs in 2026. On the product front, Intel has started shipping its Panther Lake PC chips using the 18A process, though yield issues linger. Adjusted gross margin for the December quarter is forecast to fall to 36.5%. 2
In Washington, a House panel is slated to review the “AI Overwatch Act” on Wednesday. The bill would give Congress 30 days to review and potentially block export licenses for advanced AI chips bound for China and other competitors. This follows Trump’s approval of Nvidia’s H200 chip shipments to China, which drew sharp criticism from White House AI czar David Sacks. At Davos, Anthropic CEO Dario Amodei called the chip export “a big mistake.” 3
Separately, Taiwanese server maker Inventec said Nvidia’s H200 — the firm’s second most powerful AI chip — “appears to be stuck on the China side,” despite U.S. export approval last week under certain conditions. Reuters reported that Chinese customs officials told agents the H200 wasn’t allowed into the country. It’s unclear if this is a formal ban or just a temporary hold. 4
Tariff concerns continue to weigh on the supply chain. South Korean President Lee Jae Myung cautioned that U.S. tariffs on semiconductor imports are likely to push prices up for American consumers. The U.S. is urging Asian chipmakers to increase domestic production. Commerce Secretary Howard Lutnick has even floated the possibility of slapping duties as high as 100% if the country doesn’t ramp up its capacity. 5
OpenAI revealed intentions to boost its worldwide push, calling on governments to fund additional data centers and grow AI use in fields such as education, healthcare, and disaster relief. To date, 11 nations have signed up for its “OpenAI for Countries” initiative, highlighting the vital infrastructure behind AI progress. 6
SAP tumbled to its lowest point since August 2024 on Wednesday, rattling investors worried that AI might erode the value of software services. Angelo Meda, portfolio manager at Banor SIM, pointed out that the concern isn’t about SAP disappearing but about AI weakening its pricing power by making some software modules easier to replicate. 7
Trade tensions have become more volatile. Even a small increase in tariffs, stricter export controls, or signs of weakening data-center spending could quickly trigger a risk-off reaction in the sector.
Intel’s earnings hit the tape just after Thursday’s close, zeroing in on server-chip demand, progress with its 18A process, and moves to lure third-party foundry customers. 8
