New York, January 28, 2026, 10:32 EST — Regular session underway
- Chip and AI-related stocks jump in early trading as investors digest new demand cues
- Nvidia, Texas Instruments and other semiconductor stocks climb as attention remains on the AI supply chain
- The Fed decision and megacap earnings after the bell will be the next hurdles for the trade.
Texas Instruments (TXN.O) surged 7.4% to $211.26 in early trading Wednesday after projecting first-quarter revenue between $4.32 billion and $4.68 billion, beating analysts’ $4.42 billion forecast. The analog chipmaker’s guidance points to strong demand fueled by the AI data-center boom, extending beyond Nvidia’s expensive processors, despite some concerns about capital spending pressures. Nvidia (NVDA.O) gained 1.8%, while Intel (INTC.O) and Micron Technology (MU.O) climbed 9.0% and 4.1%, respectively. Analog Devices (ADI.O) also rose 3.1%. 1
The chip move comes amid a crucial week for AI stocks, with Microsoft, Meta Platforms, and Tesla all set to report after the bell. “Expectations are very high,” said Anthony Saglimbene, chief market strategist at Ameriprise Financial, cautioning that the biggest players have little room for error on AI spending or margins. Early trading showed Microsoft flat, Meta up 0.2%, and Tesla climbing 1.0%. 2
Rates remain in focus as the Federal Reserve prepares to announce its policy decision at 2 p.m. EST. Chair Jerome Powell will speak 30 minutes later. The consensus? No rate change. Still, investors are alert for any tweaks in the Fed’s forward guidance. Seema Shah of Principal Asset Management noted there’s “no urgency to lower rates aggressively” given the economy’s resilience—a statement that hits growth stocks hard when yields start rising. 3
Nvidia is facing headline risk in China. Regulators have given the green light to ByteDance, Alibaba, and Tencent to acquire over 400,000 of Nvidia’s H200 AI chips, according to four people familiar with the situation who spoke to Reuters. The approvals come with conditions still under discussion, and one source noted the licenses are restrictive enough that no purchase orders have been placed yet. 4
The broader market is once again under pressure from semiconductors. The S&P 500 briefly pierced the 7,000 mark on Wednesday, while the Nasdaq nudged closer to a new high, buoyed by chip sector gains, Reuters reported. The Philadelphia semiconductor index jumped 2.3%. “These big round numbers can be difficult psychological tests for the market,” noted Jeff Buchbinder, chief equity strategist at LPL Financial. 5
Outside the U.S., the AI hardware supply chain kept pushing prices up. SK Hynix, a major Nvidia supplier, posted record quarterly profits and said booming AI demand will drive continued rapid memory-chip growth. Its lead in high bandwidth memory (HBM)—the fast data feeder for AI processors—is a key reason global chip stocks have closely followed every update from Seoul. 6
ASML posted a record €13.2 billion in orders for the fourth quarter, driving it to raise its 2026 sales forecast as demand surges for AI chips and data center capacity. The European chip equipment giant also announced plans to cut 1,700 jobs. CEO Christophe Fouquet said the firm aims to “boost” its engineering strength amid rising complexity, signaling that even key suppliers are feeling the strain from the AI boom. 7
Amazon shares nudged up 0.3% after the company confirmed 16,000 corporate job cuts, wrapping up a broader plan that started in October with about 30,000 layoffs. The door remains open for more reductions. Beth Galetti, Amazon’s top HR executive, explained the moves aim to “reduce layers” and cut through bureaucracy as AI and automation reshape office roles. 8
That said, the AI trade isn’t without risks. If China’s H200 approvals fail to turn into actual shipments, or if hyperscalers pull back on spending, chip orders could drop sharply. The market is already tight, so any hawkish signals from the Fed would hit hard.
Powell’s comments and the Fed statement drop Wednesday, setting the stage before after-hours earnings roll in from Microsoft, Meta, and Tesla. Apple reports Thursday. What will really move the needle is the guidance on 2026 data-center spending—not just if companies beat estimates. That will determine if today’s AI stock bounce has legs going forward.
