New York, Jan 21, 2026, 17:15 EST — Trading after hours.
Intel shares surged 11.7% to $54.25 on Wednesday, pulling the AI-chip sector’s focus back to a single stock and a single question: is this turnaround genuine, or just wishful thinking?
All eyes are on Intel’s quarterly earnings report on Thursday, searching for evidence that the AI-driven surge in data-center buildouts is fueling demand for its server CPUs — the processors that work alongside GPUs in many AI setups. According to LSEG data gathered by Reuters, Intel’s data-center revenue is expected to jump more than 30% to $4.43 billion, following a $5 billion cash infusion from Nvidia, $2 billion from SoftBank, and a stake from the U.S. government. Ryuta Makino, analyst at Intel investor Gabelli Funds, called the current sentiment “the most optimistic” seen “in a long time.” (Reuters)
The earnings report arrives as Washington steps up its crackdown on advanced AI chip exports to China—a move that’s rattled the sector’s standout performer. The U.S. House Foreign Affairs Committee pushed forward the “AI Overwatch Act,” a bill that would give Congress 30 days to review and possibly block export licenses. The latest draft also targets Nvidia’s high-end Blackwell chips with a ban. Anthropic CEO Dario Amodei cautioned at Davos: “It would be a big mistake to ship these chips.” (Reuters)
AI-related chip stocks showed mixed strength. Nvidia ticked up roughly 3.0% to $183.32. AMD jumped 7.6%, hitting $249.80, while Arm advanced 6.3% to $113.92. The iShares Semiconductor ETF gained around 3.2%.
China continues to be a key wildcard for Nvidia despite Washington’s recent decisions. CEO Jensen Huang is set to visit China in late January, Reuters reports, following the Trump administration’s green light on sales of Nvidia’s H200 AI chips to the country. However, Chinese customs later blocked those chips from entering, casting doubt on Nvidia’s access to that market. (Reuters)
Wall Street benchmarks bounced back on Wednesday, with the S&P 500 climbing 1.16% and the Nasdaq edging up 1.18%. Investors responded positively to news of a Greenland deal framework, dialing down concerns over tariffs. (Reuters)
But the setup isn’t one-sided. Options pricing shows traders are bracing for Intel shares to swing roughly 8% by week’s end. Some analysts caution recent headlines have pushed the stock beyond what the core business justifies, with ongoing competition and possible weakness in PC demand still looming as memory prices climb. (Options are contracts allowing traders to hedge or speculate on price moves; implied moves indicate what those contracts are pricing in.) (Investopedia)
Intel is set to release its fourth-quarter and full-year 2025 results Thursday after the market closes, followed by an earnings call at 2 p.m. PT. Investors are eager for updates on data-center demand, progress in Intel’s latest manufacturing initiatives, and management’s take on export and pricing risks as the next quarter approaches. (Intc)
