New York, Jan 18, 2026, 12:36 PM EST — Market closed.
- U.S. chip stocks closed last week on a stronger note, as the SOX semiconductor index rose roughly 1% Friday.
- Traders are digesting new U.S. restrictions on advanced AI chips alongside a U.S.-Taiwan agreement focused on chip investment.
- Intel’s Jan. 22 earnings will offer a key update on PC demand and foundry growth.
U.S. semiconductor shares head into the new week following a 1.15% gain in the Philadelphia Semiconductor Index (.SOX) on Friday, closing at 7,927.41. That late-week uptick managed to stick through the long weekend. 1
Chip stocks have driven gains so far in 2026, boosted by a spike in memory companies linked to AI demand. The iShares Semiconductor ETF climbed 2.1% on Friday and has jumped almost 12% year-to-date, according to a Reuters report. 2
Trade policy has become a major cloud over the market. President Donald Trump slapped a 25% tariff on select AI chips — including Nvidia’s H200 and AMD’s MI325X — following a nine-month Section 232 investigation, a U.S. statute permitting tariffs for national security reasons. 3
The White House described the 25% tariff as “phase one,” while a U.S. official indicated more announcements might come as talks with countries and companies progress. Reuters reported that Trump has earlier threatened a 100% tariff on chips produced outside the United States. 4
South Korea’s trade minister said the initial restrictions “focus on advanced chips made by Nvidia and AMD,” stressing that Korean companies should face limited impact since memory chips aren’t covered. But he warned it’s “not yet time to be reassured,” flagging the potential for a wider second phase. 5
Washington sealed a trade pact with Taiwan that slashes tariffs on a range of exports and targets boosting chip manufacturing on U.S. soil. Taiwanese firms are set to pour $250 billion into investments and back an extra $250 billion in credit, Reuters reported. The deal cuts chip tariffs for companies expanding production stateside, giving a lift to suppliers like ASML, Lam Research, and Applied Materials. Nvidia shares jumped over 2% during the session, while Intel dipped slightly. 6
AMD closed Friday at $231.83, gaining roughly 1.7% from the previous session. Investors weighed tariff concerns alongside ongoing enthusiasm for AI servers and data-center growth. 7
Nvidia closed at $186.23, slipping 0.4% despite its high-end components being specifically mentioned in the tariff announcement. 8
Outside of chips, broader stocks wrapped up the week in a narrow range, with investors cautious due to thin holiday liquidity and an earnings season now a week underway but still light on tech insights. “Historically the middle part of January tends to be pretty choppy,” noted Bruce Zaro of Granite Wealth Management. At Ameriprise, Anthony Saglimbene attributed the market’s “flat-lining” to the early phase of earnings season. 9
That puts a premium on guidance. “With all the noise swirling around geopolitics and policy, earnings have to carry the news cycle,” said Art Hogan of B Riley Wealth, noting investors are also eyeing legal battles over tariffs and concerns about the Fed’s independence. 10
Still, the chip trade can veer off course quickly. Expanding tariffs or tougher enforcement might squeeze supply chains and margins, while any shock to rates usually hits the high-multiple stocks hardest, even if demand stays strong.
Intel’s fourth-quarter and full-year 2025 results drop Thursday, Jan. 22, right after the U.S. market closes, with an earnings call set for 2 p.m. PT. Traders will be digesting the report as they return from the holiday, searching for clearer signs on PC demand, foundry progress, and how management frames 2026. 11
