New York, Jan 28, 2026, 13:38 ET — Regular session ongoing.
- Shares of Texas Instruments jumped roughly 10% in afternoon trading following an upbeat quarterly forecast linked to AI data centers.
- Seagate jumped after AI-driven data center storage demand lifted its forecast beyond expectations.
- Investors were gearing up for the Fed’s policy decision set for Wednesday, alongside earnings reports from several megacap companies.
Texas Instruments shares climbed roughly 9.8% to $215.89, building on a rally fueled by its recent quarterly forecast. Seagate Technology surged nearly 20%, while Intel added close to 11%, pushing chip stocks ahead.
This shift is significant as investors seek signs that AI expansion is reaching beyond headline processors into the quieter corners of the tech stack — like power control, signal conversion, and storage. These components usually appear in orders when data-center investments are genuinely growing, rather than just switching between chip makers.
Texas Instruments on Tuesday evening forecast first-quarter revenue and profits above Wall Street’s estimates, driven by strong demand for its analog chips—key parts that handle power and signal conversion in servers and networking equipment. CEO Haviv Ilan revealed the company will begin reporting sales specifically to the data-center market, which saw a 70% jump in revenue last quarter and accounted for 9% of 2025’s total sales. Stifel analyst Tore Svanberg called the industry’s inventory correction “essentially complete,” positioning TI for faster growth through 2026. Reuters
The rally is hitting a familiar roadblock: the ongoing global memory-chip shortage. This bottleneck could limit shipments of phones and PCs, key markets for TI’s chips, keeping demand uneven even if industrial orders pick up. Morgan Stanley sees a supply crunch for TI as unlikely due to low factory utilization but cautions that geopolitics and tariffs remain unpredictable. Louise Dudley, portfolio manager at Federated Hermes, noted that buyers in the supply chain are saying “conditions are improving” and they’re “expanding their growth plans.” Reuters
Seagate added momentum. The company projected third-quarter revenue around $2.90 billion, give or take $100 million, beating estimates. Adjusted earnings came in near $3.40 per share, plus or minus 20 cents. CEO Dave Mosley highlighted the rising demand for storage that balances “performance and cost-efficiency at exabyte-scale” as AI drives more data into cutting-edge data centers. Reuters
ASML posted record Q4 orders in Europe, raising its 2026 outlook, signaling that chipmakers continue snapping up gear for expanding capacity. Orders surged to 13.2 billion euros. At the same time, the company plans 1,700 job cuts as it reshapes its workforce. CEO Christophe Fouquet dismissed concerns that ASML will constrain customer supply this year.
Nvidia received a boost from policy changes. China has given the green light for ByteDance, Alibaba, and Tencent to collectively purchase over 400,000 of Nvidia’s H200 AI chips, sources told Reuters. However, the approvals come with strings attached, and one source noted that some customers have yet to place actual orders.
Chip stocks surged as the broader market edged toward another milestone. The S&P 500 briefly topped 7,000 for the first time Wednesday, with traders bracing for the Federal Reserve’s update on interest rates later in the day. Jeff Leschen, managing director at Bramshill Investments, noted the rally might hold if earnings confirm that AI-related spending is “bringing in revenues.” Reuters
Upcoming earnings are tightly packed: Microsoft, Meta, and Tesla announce after Wednesday’s close, followed by Apple on Thursday. “Expectations are very high,” said Ameriprise Financial’s Anthony Saglimbene, noting there’s “less room” for misses as investors watch closely for shifts in AI spending and any signals of a pullback. Reuters
