New York, January 28, 2026, 13:48 (EST) — Regular session
- Nvidia shares rose after sources said China has approved purchases of its H200 AI chips
- Intel and Micron spearhead a wide rally in chip stocks as investors focus on AI hardware demand
- Traders are gearing up for the Fed’s announcement and earnings reports from the “Magnificent Seven” after the close
Nvidia shares climbed Wednesday following China’s approval of purchases for the company’s H200 AI chips, fueling a surge in AI-related stocks that has kept the S&P 500 near the 7,000 level.
Timing is crucial. Investors want to know if the AI surge will deliver profits in 2026 or if it’s mainly about spending now with returns coming much later, especially as the Federal Reserve and Big Tech dominate the agenda.
Meta Platforms and Microsoft are set to release earnings after the market closes, followed by Alphabet and Amazon next week. Alongside Amazon, these giants are projected to ramp up AI investments by roughly 30%, pushing total spending above $500 billion this year. This surge is intensifying focus on cloud growth and profit margins. 1
In afternoon trading, Nvidia rose 1.7% to $191.77. Intel surged 10.8% to $48.66. Micron climbed 5.2% to $431.48, and Microchip Technology advanced 7.8% to $81.01.
China has greenlit ByteDance, Alibaba, and Tencent to acquire over 400,000 H200 chips combined, according to four insiders who spoke to Reuters. The approvals carry conditions that are still under negotiation, and one source noted the licenses are so restrictive that none of the companies have placed orders yet. 2
The H200 ranks as Nvidia’s second most powerful AI chip and has become a key issue in U.S.-China tech tensions. Chinese companies are eager to get their hands on it for data centers that train and operate large AI models, despite Beijing considering regulations aimed at boosting local suppliers.
SK Hynix posted a record quarterly operating profit, driven by booming AI demand. The company highlighted strong sales of memory products, especially high-bandwidth memory (HBM) — those speedy chips that sit next to AI processors to shuttle data fast. 3
ASML posted record orders for the fourth quarter and boosted its 2026 forecast, but analysts grilled executives on the company’s ability to keep pace as chipmakers ramp up capacity. CEO Christophe Fouquet highlighted customer expansions, noting that Micron’s steady stream of project announcements feeds “direct[ly]… into shipments for us.” 4
Micron revealed plans for a $24 billion memory chip factory in Singapore, aiming to start wafer production in the latter half of 2028. The company also highlighted continued investment driven by AI and data-intensive workloads. TrendForce analyst Bryan Ao noted that “demand for high-performance storage equipment has been growing much faster than expected,” citing the rise of AI “inference”—the real-time running of models after training. 5
The S&P 500 climbed 0.3% to 6,999.71, after a quick push above the 7,000 mark. Jeff Leschen, managing director at Bramshill Investments, noted the rally could continue if “AI expenditure is bringing in revenues.” 6
That said, risks remain. China’s approvals might not translate into actual shipments, export regulations could tighten on short notice, and earnings might reveal cloud growth is slowing despite rising capital expenditures. If the Fed signals that rate cuts are further off, the highest-multiple AI stocks could take the first hit.
Coming next: the Fed’s policy announcement hits at 2 p.m. EST, with Chair Jerome Powell set to speak half an hour afterward. After the bell, attention shifts to earnings from Meta, Microsoft, and Tesla as investors hunt for insights on AI demand, capacity issues, and spending forecasts for 2026. 7
