Cisco Systems forecast quarterly gross margins below market expectations, citing higher memory chip costs. The weaker margin outlook overshadowed stronger-than-expected results and sent shares down about 7% in extended trading.

Applied Materials, a Santa Clara-based semiconductor equipment maker, has reached a US$252.5 million settlement with the US Department of Commerce’s Bureau of Industry and Security (BIS) to resolve allegations of illegal exports to China. The penalty represents the second-highest civil fine ever imposed by the BIS and the maximum amount permitted by statute — equal to twice the value of the illegal transactions.

Notebook brands Acer and Asus posted strong January revenue, defying the usual seasonal slowdown. The supply chain, however, remains cautious — the momentum, sources warn, is short-lived. When inventories of key components are drawn down by the second quarter of 2026, and price increases are passed on to end consumers, the real test will begin. As Warren Buffett famously put it: “Only when the tide goes out do you discover who’s been swimming naked.”