New York, Jan 26, 2026, 06:12 EST — Premarket
Nvidia shares climbed in early trading Monday following a Reuters report that Samsung Electronics will begin producing its next-generation high-bandwidth memory chips, HBM4, next month to supply the AI chipmaker. 1
This read-through is crucial since memory poses a tough bottleneck for high-end AI processors: if there isn’t enough fast memory, the chips starve. HBM (high-bandwidth memory), a stacked DRAM built for this exact purpose, has faced shortages that quietly cap how fast data centers can scale their AI capacity.
The supply headline hits at a tricky time for traders. With a packed week of big-tech earnings looming, attention is zeroing in on just a couple of key points: AI revenue growth and the extent of any capex increases.
Microsoft jumped 3.3% in early trading, Nvidia climbed 1.5%, and AMD added 2.3%. On the downside, Broadcom dropped 1.7%, with Arm sliding 2.6%. Palantir edged up 2.3%, Micron gained 0.5%, but chip ETFs struggled—SOXX fell 1.1% and SMH dropped 0.7%.
Samsung is pushing to catch up with SK Hynix, a crucial provider of advanced memory chips for Nvidia’s AI accelerators, following supply hiccups that dented its earnings and weighed on its stock. 2
Micron faces a double-edged sword: a rival narrowing the gap with Nvidia poses a threat, yet supply remains constrained. “Micron’s HBM supply for 2026 is already sold out,” noted William Blair analyst Sebastien Naji, who also projects Micron will maintain a low-20% market share through 2027. 3
Microsoft, a key indicator of AI demand via Azure and its software suite, is set to release its fiscal second-quarter results after markets close on Jan. 28. CEO Satya Nadella and CFO Amy Hood will head up the earnings call. 4
UBS trimmed its Microsoft price target to $600 from $650 but stayed bullish with a buy rating, citing a broader de-rating in software stocks. Some analysts are growing more cautious on valuations despite holding onto positive ratings. 5
The scene isn’t straightforward. Late Sunday, U.S. index futures dipped as traders mulled over renewed tariff discussions and a growing chance of a government shutdown in Washington. On top of that, the earnings slate is crowded with major tech giants. 6
The risk is clear: if this week’s earnings reveal AI demand growing more slowly than anticipated, or if firms pull back on capex, the top AI stocks with the highest multiples could face more volatile moves. Bill Gates, speaking at Davos, cautioned that not every company benefiting from the AI surge will justify its lofty valuations—a sharp reminder that this trade isn’t one-sided. 7
Investors are focused on a clear, upcoming event: Microsoft’s earnings release on Wednesday. Other major tech companies will report later in the week, offering insight into AI spending and whether revenue growth is keeping pace. 8
