The artificial intelligence boom is reshaping corporate earnings across the tech sector, with semiconductor equipment makers and memory chip producers posting record results that signal sustained demand for AI infrastructure. Meanwhile, the energy sector is staging a remarkable turnaround after a sluggish 2025, with investors rotating back into oil and gas stocks as production recovers and prices stabilize.
Japanese semiconductor equipment maker Advantest posted record quarterly sales in the October-December period, sending its shares jumping as much as 14% on January 29, according to CNBC. The company's surge reflects soaring demand for AI chip testing equipment as companies race to build out data center capacity. "Advantest shares jumped over 7% after the company posted record quarterly sales," CNBC reported, underscoring how the AI infrastructure buildout is creating a ripple effect across the semiconductor supply chain.
Samsung Electronics is experiencing similar momentum. According to CNBC, the company "reported an over three-fold surge in fourth-quarter profits, hitting a new record and beating analysts' estimates" on January 29, driven by AI chip demand and memory shortages. The memory chip shortage reflects the intense competition for high-bandwidth memory components essential to AI systems—a constraint that's likely to persist as data center deployments accelerate.
Tech Giants Navigate AI Spending Pressures
Not all tech earnings are creating investor euphoria, however. While Meta received a "green light from Wall Street to keep pouring money into AI" following strong earnings, according to CNBC on January 28, other software companies are facing scrutiny. ServiceNow's stock was "set to extend declines despite a better-than-expected forecast," MarketWatch reported on January 29, suggesting investors want to see more tangible returns from AI investments. Microsoft similarly faced headwinds after earnings, with MarketWatch noting on January 29 that "investors focused on the balance between AI spending and AI revenue wanted more juice from Microsoft's cloud business in the latest quarter."
The divergence reflects a broader market concern: AI spending must eventually translate into revenue growth, not just infrastructure buildout.
Energy Sector Bounces Back After Weak 2025
The energy sector is capitalizing on this moment of investor optimism. According to OilPrice.com on January 29, the sector "notched a respectable, but below-market, return of 7.9%" in 2025 while the S&P 500 gained 16.4%, "in large part due to a big pullback in oil prices in the second half of 2025." But the tide is turning. "Oil and gas stocks are looking to flip the script in the early innings of the new year, with the energy sector up 11.2% in the year-to-date, the best sector performance so far in the year," OilPrice.com reported.
Oil prices themselves are holding firm. According to Reuters on January 28, prices are "hovering around four-month high, buoyed by Iran concerns, weak dollar." This stability comes as U.S. production recovers from recent disruptions. Reuters reported on January 28 that "US crude, natural gas production recover after winter storm ravages output," providing relief to markets that had experienced supply shocks from Arctic weather.
Natural gas markets are also recalibrating after the winter volatility. According to Natural Gas Intel on January 28, "physical natural gas prices continued their descent back to Earth on Wednesday, following weather-induced blowouts at various hubs as a polar vortex disruption shut in production and sent demand surging."
Looking Ahead
The Federal Reserve's decision to hold rates steady at 3.50%–3.75% on January 28 is providing some stability for energy markets. According to OilPrice.com, the FOMC's "cautious stance amid mixed economic signals and persistent inflation above target" reflects uncertainty about the economic outlook—a factor that could support energy prices if growth remains solid.
The convergence of AI infrastructure demand and recovering energy production suggests both sectors could benefit from sustained economic activity. However, the divergent reactions to tech earnings remind investors that enthusiasm must be grounded in actual business results. For the energy sector, the rebound appears more straightforward: production is recovering, prices are stable, and geopolitical risks remain elevated.
Reporting based on coverage from CNBC, MarketWatch, Reuters, OilPrice.com, and Natural Gas Intel.