New York, February 6, 2026, 17:05 EST — Trading after the bell.
- Chip stocks surged, pushing Nvidia up almost 8% and sending the Dow to its first-ever close above 50,000.
- Amazon shares dropped as the company forecast a steep climb in capital spending for 2026, aiming to ramp up its AI infrastructure.
- Next week, traders are zeroed in on fresh U.S. inflation figures and jobs numbers—key signals for the rate outlook.
Nvidia and several other chipmakers connected to AI soared Friday, driving the Dow Jones Industrial Average past the 50,000 mark for the first time. Amazon slipped, though, fueling debate among investors about how much the AI ramp-up is costing. The S&P 500 and Nasdaq snapped their three-day losing streaks, both closing in the green. 1
This change in sentiment is significant: the so-called “AI trade” isn’t a single basket anymore. Investors are separating out the hardware makers fueling the next wave of data centers from firms that could see their margins squeezed as AI tools become cheaper—and more powerful. 2
The divide widened this week, following a brutal drop in U.S. software and data-services shares. On Thursday, the S&P 500 software and services index tumbled 4.6%. Since January 28, that sector has lost nearly $1 trillion in market value. Traders are calling it “software-mageddon.” 3
Amazon landed on the losing end of Friday’s AI trade. The company told investors it expects capital spending to reach around $200 billion in 2026—well up from $131 billion set for 2025—mostly going to data centers and servers. Investors didn’t like it. Shares tumbled after the update. “The market just dislikes the substantial amount of money that keeps getting put into capex for these growth rates,” said Dave Wagner, portfolio manager at Aptus Capital Advisors. 4
Earlier this week, Alphabet floated its own hefty capex range for 2026—anywhere from $175 billion to $185 billion—as it ramps up AI computing infrastructure. Chief executive Sundar Pichai told analysts the company’s AI-driven investments were fueling growth and revenue everywhere, though he also flagged ongoing capacity constraints. 5
AI took center stage at an industry gathering, where Nvidia CEO Jensen Huang pushed back on the idea that artificial intelligence could simply sweep aside today’s software tools. Calling that notion “illogical,” Huang said AI will rely on current tools, not toss them out and start over. 6
The last two days have been a wild ride for chip stocks. AMD plunged 13% Wednesday—its cautious outlook reigniting worries over whether it can catch Nvidia. Then, shares snapped back as chips rallied more broadly. 7
Signs of strain aren’t limited to the high-profile GPUs. According to a Reuters report, Intel and AMD have warned Chinese customers to brace for extended wait times on some server CPUs, with Intel’s delivery schedules for certain models slipping out as far as six months. Intel expects its inventory levels to bottom out during the first quarter, anticipating some supply relief in the second. 8
Chip demand looks strong—at least theoretically—with the Semiconductor Industry Association projecting global sales to reach $1 trillion in 2026, pulling the target a year forward after forecasting a 19.7% jump for 2025. “Orders are full and the glide path to $1 trillion is clearly in sight,” SIA chief executive John Neuffer told Reuters. 9
Even so, risks linger. Valuation is one piece, but higher capital spending could also cut into cash flow. Export regulations keep shifting as well: Nvidia is in talks with U.S. officials to hammer out license details for shipping its H200 AI chips to Chinese customers, said a person with knowledge of the discussions. Those talks, Reuters reports, include possible “Know Your Customer” requirements. 10
Server manufacturers are scrambling to meet demand. Wistron’s chief executive told Reuters this week, “AI is not a bubble,” adding that the company plans to accelerate production of servers equipped with Nvidia’s new Blackwell chips starting next quarter. 11
Macro takes the spotlight next. All eyes are on the U.S. Employment Situation for January 2026, due Wednesday, February 11, and then the Consumer Price Index coming Friday, February 13—both dropping at 8:30 a.m. Eastern. Any move in the rate picture tends to ripple through high-growth AI names fast. 12
