New York, Jan 31, 2026, 06:31 EST — Market closed
- Intel closed Friday down, weighed down by rate concerns and mixed results from tech earnings that continued to drag on chip stocks.
- The stock remains pressured after last week’s disappointing outlook, as investors zero in on supply issues and margin concerns.
- U.S. data next week could shift rate expectations — and hit the tech stocks most sensitive to interest rates.
Intel shares dropped 4.4% on Friday, ending the day at $46.47 following a volatile session with prices swinging from $45.97 up to $49.56.
This shift matters because Intel now stands as a major proxy for two clashing debates: the duration of the AI buildout and the impact of rising rates on big-cap tech valuations.
U.S. markets are shut for the weekend, leaving traders to eye Monday for fresh momentum—whether from new macro data or clues on whether Intel’s supply problems are starting to ease.
Wall Street closed lower on Friday, pressured by a hotter-than-expected inflation report and doubts over Donald Trump’s nomination of Kevin Warsh to replace Jerome Powell as Fed chair. Michael Hans of Citizens Wealth said the “markets are calibrating” to the appointment and its implications for policy. (Reuters)
The day before, the Nasdaq dipped amid doubts over whether huge AI investments will deliver returns fast enough—a concern that’s repeatedly pressured rate-sensitive tech stocks. “There are all sorts of storm clouds in the background,” said John Praveen, managing director and co-CIO at Paleo Leon. (Reuters)
Intel is still grappling with the fallout from last week’s guidance. The chipmaker projected first-quarter revenue between $11.7 billion and $12.7 billion, with adjusted earnings per share expected to break even—falling short of analyst estimates. Struggles to keep up with demand for server chips powering AI data centers are to blame. “In the short term, I’m disappointed that we are not able to fully meet the demand in our markets,” Lip-Bu Tan told analysts. (Reuters)
After the report came out, Intel’s execs and analysts flagged supply constraints persisting through Q1, despite factories running full tilt. David Zinsner expects supply to get better in Q2. Meanwhile, TD Cowen analysts suggested the earlier rally was fueled more by optimism than by solid near-term fundamentals. (Reuters)
The competitive landscape remains largely the same. Intel aims to seize AI-driven server demand linked to Nvidia’s leading AI chips, all while holding ground in its PC segment against Advanced Micro Devices.
Investors are focused less on a single quarter’s headline and more on the rhythm: can Intel boost supply without further margin pressure? And will AI data-center expansions keep up the pace needed to offset rising costs?
The downside is straightforward. Should supply bottlenecks drag on beyond forecasts, or if climbing memory prices weigh more heavily on PC demand, Intel’s rebound could stall quickly. That’s especially true in a market that punishes firms sharply when rates climb and expectations run high.
Monday brings fresh U.S. manufacturing data, with the ISM Manufacturing PMI in focus. This survey-based indicator is a go-to for traders looking to gauge factory activity quickly. (ISM World)
Investors are set to focus on the U.S. Bureau of Labor Statistics employment report for January, scheduled for release on Feb. 6 at 8:30 a.m. Eastern. Market watchers will be looking for any clues that might change expectations around interest rates. (Bls)
