New York, Feb 1, 2026, 12:43 PM EST — Market closed
- The Philadelphia Semiconductor Index dropped 3.9% on Friday, slipping beneath the 8,000 mark
- Chip equipment shares plunged sharply, while AI-related storage and memory stocks held firm
- Investors are eyeing AMD’s earnings on Feb. 3, Qualcomm’s on Feb. 4, and the U.S. jobs report due Feb. 6
Momentum in semiconductor stocks stalled as the Philadelphia Semiconductor Index dropped 3.87% on Friday, closing at 7,998.5. (Investing)
Stocks slipped late in the week after President Donald Trump nominated Kevin Warsh to lead the Federal Reserve — a move some investors took as a signal for a tougher stance if inflation fails to ease. “Markets are calibrating to Trump’s pick of Kevin Warsh,” said Michael Hans of Citizens Wealth, as the S&P 500 and Nasdaq closed down. Chip-toolmaker KLA Corp plunged 15.2%, while “lingering inflation pressure” stayed in focus, noted Angelo Kourkafas at Edward Jones. (Reuters)
Inside the group, the tape was choppy. Sandisk surged after forecasting fiscal third-quarter revenue between $4.4 billion and $4.8 billion, with adjusted earnings of $12 to $14 per share, driven by what it described as AI-related demand. The company also announced an extension of its flash supply deal with Kioxia Corp through 2034. Micron Technology, Western Digital, and Seagate Technology were also mentioned as memory cycle winners. (Reuters)
That contrast is key for semiconductor investors today: while a macro stumble can rattle the entire sector, the market is drawing a clearer line between AI-driven memory and storage and other segments. Equipment makers and cyclical stocks tend to react more sharply to missed guidance or shifts in interest rates.
As U.S. markets reopen Monday, the focus shifts from Friday’s close to earnings reports and outlooks. Chip valuations have been buoyed mainly by AI spending, and now those assumptions face scrutiny during earnings calls.
Advanced Micro Devices will release its fiscal fourth-quarter and full-year 2025 earnings Tuesday at 5:00 p.m. EST, per its investor relations calendar. (Advanced Micro Devices, Inc.)
Qualcomm announced it plans to release its fiscal first-quarter earnings on Wednesday, Feb. 4, after the market closes. The company will follow up with a conference call at 1:45 p.m. Pacific time. (Qualcomm)
Macro remains a key factor. The Bureau of Labor Statistics will drop the January jobs report Friday, Feb. 6, at 8:30 a.m. This data could shift rate outlooks and ripple through long-duration growth stocks like chipmakers. (Bureau of Labor Statistics)
The risk to semiconductor stocks is clear: any sign from earnings or guidance that AI demand is peaking earlier than anticipated could trigger a rapid sell-off. Renewed worries about interest rates could also hit the sector hard. Another issue is that rising component costs continue to pressure margins in certain parts of the supply chain.
Looking ahead, key dates are Feb. 3 for AMD, Feb. 4 for Qualcomm, and Friday’s U.S. jobs report. Chip investors will be focused on whether the sector can steady itself after last Friday’s drop.
