New York, Feb 7, 2026, 12:14 EST — Market closed.
- Nvidia jumped 7.8% Friday, while AMD surged 8.3%. Broadcom tacked on 7.1%. The Philadelphia semiconductor index advanced 5.7%.
- Amazon shares slid 5.6% as the company forecast capital spending would surge by over 50%, driven by investments in AI infrastructure.
- For rate-sensitive AI stocks, the real tests land next week: the postponed U.S. payrolls report and January CPI loom large.
Nvidia shot up 7.8% on Friday, locking in a strong comeback for AI-linked chip and data center names as traders piled back into “picks-and-shovels” plays. AMD took off with an 8.3% gain, Broadcom rallied 7.1%, and the Philadelphia semiconductor index jumped 5.7%. Amazon, though, dropped 5.6% after warning this year’s capital expenditures would soar over 50%. “There’s real demand” for AI products, said Ross Mayfield, investment strategy analyst at Baird, pointing out that recent selloffs have been quick to attract fresh buyers. 1
The significance here: AI stocks aren’t moving in lockstep anymore. Investors are wrestling with anxiety over mounting AI costs, even as underlying demand holds up. U.S. tech names took a beating earlier this week—spending fears and talk of tougher competition dragged them lower. But Robert Pavlik, senior portfolio manager at Dakota Wealth, described Friday’s rebound as “technical buying,” saying, “The market got overdone to the downside.” 2
Next week is set to be heavy with potential market movers, testing whether Friday’s rally in AI names has legs. According to Reuters’ “Take Five” preview, the delayed January U.S. non-farm payrolls report—pushed back by the three-day government shutdown—lands Wednesday, with a Reuters poll forecasting 70,000 jobs gained. Two days after, the January CPI numbers hit. Earnings from Cisco Systems and Siemens Energy are also on tap for Wednesday. Barclays, as cited by Reuters, notes the AI trade is marked by “extreme dispersion,” with investors separating the field’s winners from its losers at a rapid clip. 3
There’s a new wrinkle: Big Tech’s ramped-up capex signals fatter orders for servers, networking equipment, and chips. But it’s a double-edged sword—investors are watching cash flow, margins, and how fast those bets pay off.
Some software stocks knocked lower by “AI disruption” headlines clawed back ground Friday—CrowdStrike and Palantir each jumped over 4%. The week still hurt, though. Investors unloaded chunks of the software and services sector, worried that stronger AI models might pressure pricing.
Chipmakers keep earning market trust, mostly thanks to how they’re performing. As Krystal Hu of Reuters points out, investors have piled into AI hardware: semiconductor shares have surged by about 65% since early 2025. By comparison, software and services names dropped 8%—reflecting concerns that AI could make their offerings more interchangeable. 4
It all comes back to rate bets. San Francisco Fed President Mary Daly, speaking with Reuters, said she sees room for one or two rate cuts this year. She flagged a job market where workers are “walking a knife’s edge”—higher prices, fewer chances—which is the kind of setup that can send high-growth tech names swinging wildly when the numbers come in off script. 5
Inflation, though, isn’t playing along. It’s still the wild card. According to Reuters, the Fed’s go-to core PCE inflation measure is ticking up once more, with officials now figuring core PCE clocked in near 3% late last year—hardly the direction rate-cut optimists want. That’s a reality check: when inflation refuses to cool, the case for looser policy can evaporate quickly. 6
AI stocks face a well-worn pattern: a jump in inflation data or unexpected wage gains sends yields climbing, and traders are quick to chop down the steepest valuations—regardless of steady chip demand.
Monday’s open will show if Friday’s buyers actually had conviction or were just snapping up stocks after a shaky stretch. The chip names have been out front lately, but traders have shown little patience for any hint of margin pressure or capex fatigue.
Here’s the setup: Investors catch up with that postponed payrolls report on Wednesday. As for inflation, the U.S. Bureau of Labor Statistics has the January CPI lined up for Friday, Feb. 13, hitting at 8:30 a.m. ET. That’s the print that can flip rate expectations—and shake up names like Nvidia, along with the broader AI trade. 7
