TLDRs;
- Nvidia rises 1.5% premarket after Samsung announces HBM4 memory production for AI chips.
- Memory supply bottleneck eases as Samsung aims to catch up with SK Hynix.
- Microsoft earnings in focus as AI demand signals drive investor attention.
- AI sector volatility persists amid tariffs, valuations, and government uncertainty.
New York, January 26, 2026 , Nvidia shares edged higher in premarket trading Monday after news emerged that Samsung Electronics will begin producing its next-generation high-bandwidth memory (HBM4) chips next month.
The development comes as the AI chipmaker grapples with memory supply constraints that have limited the scaling of its advanced data center processors.
Premarket Boost for Nvidia
The market responded positively to Samsung’s announcement, with Nvidia climbing roughly 1.5% in early trading. The stock move reflects growing investor optimism that the memory bottleneck for AI chips may soon ease.
High-bandwidth memory is critical for modern AI processors, allowing massive data throughput without delays. For Nvidia, HBM shortages have quietly restricted the expansion of AI capabilities in data centers worldwide.
Other AI-related stocks saw mixed premarket reactions. Microsoft jumped 3.3% ahead of its earnings report later this week, AMD gained 2.3%, while Broadcom and Arm retreated 1.7% and 2.6%, respectively. Chip ETFs like SOXX and SMH also fell slightly, indicating uneven sector sentiment.
Memory Supply Constraints Loosen
The move positions Samsung to catch up with competitor SK Hynix, which has been a key supplier of advanced memory for Nvidia. Supply hiccups previously affected both companies’ earnings and created volatility in AI chip stocks. Analysts note that easing this constraint is particularly timely, given the AI industry’s rapid expansion.
Micron, another major memory provider, faces a paradox: while competition intensifies, its supply remains limited. William Blair analyst Sebastien Naji notes that Micron’s 2026 HBM inventory is already sold out, and the company is expected to maintain a low-20% market share through 2027. The dynamic underscores how critical memory availability is to AI chipmakers’ revenue potential.
Eyes on Microsoft Earnings
Microsoft’s upcoming earnings report on January 28 is seen as a key indicator of AI demand. The company’s Azure cloud platform and AI-enhanced software provide a window into corporate spending on AI infrastructure. While UBS recently lowered Microsoft’s price target to $600 from $650, analysts remain broadly bullish, noting that AI adoption continues to fuel revenue growth despite a broader software sector de-rating.
The earnings season could reshape expectations for the AI sector, particularly for companies with high valuations. Traders are closely watching whether AI revenue growth meets projections and whether firms maintain or increase capital expenditures in AI technology.
Sector Volatility Persists
Despite Nvidia’s modest premarket gains, the broader tech environment remains uncertain. Sunday evening saw U.S. index futures dip as traders weighed potential tariff developments and the risk of a government shutdown. High-multiple AI stocks, in particular, may experience heightened volatility if earnings reports show slower-than-expected AI adoption or cautious corporate spending.
Prominent voices, including Bill Gates, have cautioned that not every company benefiting from the AI boom will justify its lofty valuations. Investors are therefore taking a measured approach, balancing optimism over memory supply improvements with prudence regarding AI stock multiples.
As Nvidia moves into the week, market watchers will be tracking both supply-chain developments and upcoming earnings from Microsoft and other tech giants. The combined signals will help determine whether Nvidia and other AI leaders can sustain growth amid memory constraints and valuation pressures.
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