We also break down next week’s catalysts to watch to help you prepare for the week ahead.
In this article:
This week’s tech sector performance
Tech stocks experienced sharp swings this week, starting on relatively firm footing before a broad selloff midway through the period gave way to a late rebound in semiconductor companies.
A Sunday (January 11) statement from US Federal Reserve Chair Jerome Powell put pressure on US stocks ahead of Monday’s (January 12) open, with ‘sell America’ sentiment prevalent among investors. Powell’s comments centered on a Department of Justice criminal probe into his testimony about Fed building renovations.
Financial and payment companies, including major credit card issuers, also sold off at that time following political pressure for a cap on credit card interest rates. However, the overall reaction was muted during Monday’s trading session, with some early dips recovering fully, and indexes closing at record highs.
Rotation continued to be a major theme this week, with money moving out of some mega-cap tech names and into chip stocks, small-cap companies and resource plays. Intel (NASDAQ:INTC) and Advanced Micro Devices (AMD) (NASDAQ:AMD) rallied early on after being upgraded to “overweight” by KeyBanc Capital Markets on Tuesday (January 13). Citigroup (NYSE:C) also lifted its Intel rating to “neutral” from “sell.”
Wednesday (January 14) brought heavy selling in tech stocks, with high-flying growth names seeing losses; however, Google’s (NASDAQ:GOOGL) and Apple’s (NASDAQ:AAPL) losses were comparatively mild.
Chipmakers were the bright spot, with the real catalyst coming on Thursday (January 15) after Taiwan Semiconductor Manufacturing Company’s (NYSE:TSM) blowout quarterly results triggered a rally across chipmakers and chip equipment stocks, including Micron Technology (NASDAQ:MU), Broadcom (NASDAQ:AVGO), Qualcomm (NASDAQ:QCOM), AMD and ASML Holding (NASDAQ:ASML), which hit a US$500 billion market cap on Thursday.
This performance helped stabilize the broader tech space, although caution lingered.
3 tech stocks moving markets this week
1. Taiwan Semiconductor Manufacturing Company (NYSE:TSM)
As mentioned, Taiwan Semiconductor reported blowout Q4 results and upbeat guidance on Thursday, fueled by relentless artificial intelligence (AI) demand. Revenue jumped 36 percent year-on-year, with management projecting 20 to 25 percent growth in 2026. Shares climbed 5.8 percent on the week.
2. Applied Materials (NASDAQ:AMAT)
Applied Materials gained 8.56 percent amid the broader semiconductor equipment surge.
The company’s high-bandwidth memory revenues hit US$1.5 billion in its 2025 fiscal year. This new growth engine is tied directly to NVIDIA’s (NASDAQ:NVDA) GPU roadmap.
3. KLA (NASDAQ:KLAC)
KLA, a key supplier of process control equipment to chip fabricators, rode the Taiwan Semiconductor tailwind, rising 11.99 percent for the week as investors bet on sustained CAPEX from foundries.
Taiwan Semiconductor, Applied Materials and KLA performance, January 12 to 16, 2025.
Chart via Google Finance.
Top tech news of the week
Tech ETF performance
Tech exchange-traded funds (ETFs) track baskets of major tech stocks, meaning their performance helps investors gauge the overall performance of the niches they cover.
This week, the iShares Semiconductor ETF (NASDAQ:SOXX) advanced by 5.04 percent, while the Invesco PHLX Semiconductor ETF (NASDAQ:SOXQ) saw a gain of 4.89 percent.
The VanEck Semiconductor ETF (NASDAQ:SMH) also increased by 3.76 percent.
Tech news to watch next week
Next week brings a packed slate of catalysts that could shape tech sentiment.
Intel is set to report its Q4 earnings on January 22. Recent upgrades have the stock at 52 week highs, but investors will probe foundry progress and AI revenue traction for proof of a sustained turnaround.
Davos starts on January 19, with AI and energy infrastructure front and center. Global leaders and tech executives will tackle data center power crunches and supply chain frictions, with potential hints on tariff policies.
The US Supreme Court is due to deliver rulings on the morning of January 21, including challenges to Trump’s global tariffs, while the House Financial Services Committee will hold a markup on the Financial Innovation and Technology for the 21st Century Act (FIT21), with a floor vote possible soon.
Key economic releases include retail sales on January 20, flash purchasing managers’ indexes and jobless claims on January 22 and existing home sales on January 23. These will test the soft landing narrative.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
