NEW YORK, Jan 21, 2026, 10:35 ET — Regular session
- Ahead of Thursday’s close and the quarterly earnings report, Intel pushed AI chip stocks upward
- Tensions between Washington and Beijing over AI chip exports remained a key issue for Nvidia
- Traders are closely tracking if AI-driven data-center spending holds steady as earnings season unfolds
Intel shares surged 9.7% to $53.25 in early New York trading Wednesday, sparking a rally in AI chip stocks. AMD climbed 6.5%, Nvidia nudged up 1.5%, while Microsoft dipped 1% and Oracle dropped 2.3%. The iShares Semiconductor ETF advanced 2.6%.
The group bounced back a day after a sharp sell-off hit some of the most crowded “AI trade” stocks, as investors grappled with tariff jitters and geopolitical tension. President Donald Trump, speaking at Davos on Wednesday, renewed his bid to acquire Greenland but made it clear he wouldn’t use force. Art Hogan of B Riley Wealth said that stance “put a floor” under the recent slide, though he warned markets are still wary of a trade-war flare-up. (Reuters)
Intel is set to release its fourth-quarter results after Thursday’s close, with investors keen to see if AI-driven data-center expansions are boosting demand for its core server chips. The data-center segment is forecast to have grown over 30% to $4.43 billion. Gabelli Funds analyst Ryuta Makino called the near-term outlook “very well,” highlighting the possibility of a double-digit price increase for server CPUs — the key processors in data centers — in 2026. Meanwhile, Intel has begun shipping its new Panther Lake PC chips, built on its 18A process, but manufacturing yields remain a concern. Adjusted gross margin for the December quarter is expected to have dropped to 36.5%. (Reuters)
In Washington, a House panel was set to review the “AI Overwatch Act” on Wednesday. The bill would give Congress 30 days to vet and possibly block export licenses for advanced AI chips headed to China and other rivals. This move comes after Trump approved shipments of Nvidia’s H200 chips to China, sparking criticism from White House AI czar David Sacks. At Davos, Anthropic CEO Dario Amodei labeled the decision to ship the chips “a big mistake.” (Reuters)
Separately, Taiwanese server maker Inventec said the fate of Nvidia’s H200 — the company’s second most powerful AI chip — “appears to be stuck on the China side,” despite U.S. approval for exports last week under certain conditions. Reuters reported that Chinese customs officials told agents the H200 was not allowed into the country, though it’s unclear whether this amounts to a formal ban or just a temporary hold. (Reuters)
Tariff risks remain a pressure point for the supply chain. South Korean President Lee Jae Myung warned that U.S. tariffs on semiconductor imports will probably lead to higher prices for American consumers. The U.S. is pushing Asian chipmakers to boost production domestically. U.S. Commerce Secretary Howard Lutnick has even suggested duties could hit 100% if the U.S. fails to expand its capacity. (Reuters)
OpenAI announced plans to ramp up its global efforts, urging governments to invest in more data centers and expand AI applications in sectors like education, health, and disaster response. So far, 11 countries have joined its “OpenAI for Countries” program, spotlighting the crucial infrastructure supporting AI development. (Reuters)
Not every AI-related stock has been a refuge. SAP dropped to its lowest level since August 2024 on Wednesday, spooking investors who fear AI may undercut software service values. Banor SIM portfolio manager Angelo Meda noted the issue isn’t SAP’s survival but the potential hit to its pricing power, as AI could make some software modules easier to copy. (Reuters)
That trade has grown volatile. Any hike in tariffs, tighter export controls, or signals that data-center spending is slowing could rapidly push the sector into a risk-off mode.
Intel’s earnings report drops right after Thursday’s close, spotlighting its take on server-chip demand, the rollout of its 18A process, and efforts to attract third-party foundry clients. (Marketscreener)
