Semiconductor stocks opened October strongly, with the iShares Semiconductor ETF rising for five consecutive trading days, and the sector’s largest companies reaching record highs. However, by the week ending October 9, related shares reversed course. Sentiment weakened on Thursday after the Financial Times reported that OpenAI informed investors its annualized revenue through the end of September was nearing $50 billion, below the approximately $70 billion previously cited in media reports. Given that semiconductor valuations are closely tied to expectations for AI infrastructure spending, the report weighed on the sector, causing the PHLX Semiconductor Index to close lower for the week, while broader markets demonstrated greater resilience. Active companies with recent developments this week include Taiwan Semiconductor Manufacturing Company (NYSE: TSM), NVIDIA Corporation (NASDAQ: NVDA), Intel Corporation (NASDAQ: INTC), Arm Holdings plc (NASDAQ: ARM), and Micron Technology, Inc. (NASDAQ: MU).
This pullback occurred following a significant prior rally. The PHLX Semiconductor Index rose 73% year-to-date through late September, and several of the sector’s largest components had already posted triple-digit gains in 2026. Rising long-term U.S. Treasury yields and higher oil prices also added pressure mid-week, as higher discount rates typically weigh more heavily on companies valued based on long-term growth expectations.
Company-level developments also influenced performance within the sector. At the start of the week, two companies announced record-breaking milestones, while others faced public questions regarding manufacturing partnerships, ongoing litigation, and the sustainability of AI-related demand.
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Here are other industry developments this week:
Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM)
On October 5, TSMC's stock reached a record high after Elon Musk confirmed that early discussions had taken place regarding the company's potential role in its planned Texas Terafab chip facility, adding that these discussions were “just discussions.” On October 8, the company reported September revenue of NT$511.86 billion, a 54.6% year-over-year increase but a 0.6% decline from August; for the first nine months of 2026, revenue reached NT$3.90 trillion, up 41.1% year-over-year.
NVIDIA Corporation (NASDAQ: NVDA)
On October 5, NVIDIA's stock reached a record high, bringing its year-to-date gain to approximately 24.8% and its rise since the August 26 earnings release to about 14%. Even during a recent period of sector weakness, the company demonstrated relative strength: on September 28, as semiconductor stocks declined amid concerns over AI safety, NVIDIA rose following the announcement of a $150 billion stock buyback authorization and the release of two open-source tools designed to help control AI agents.
Intel Corporation (NASDAQ: INTC)
On October 5, Intel's stock declined after Musk indicated that TSMC might participate in the Terafab project. Intel joined the project as a partner in April. On October 8, Musk stated that his company would build and operate the Texas facility, with another chip manufacturer able to lease only a portion of the space at most. Intel affirmed its continued participation, though its exact role has not yet been finalized. Despite the decline, Intel's stock had risen approximately 215% year-to-date as of the close on October 5.
Arm Holdings plc (NASDAQ: ARM)
During a five-day jury trial in the U.S. District Court in Wilmington, Delaware, Arm's stock price declined. Qualcomm accused Arm of breaching its licensing agreement and attempting to undermine Qualcomm's transaction with Meta Platforms. Arm denied these allegations. The case was submitted to the jury on October 9, and the judge has not yet ruled on whether a clause that could allow Qualcomm to stop paying patent royalties for five years is enforceable. Arm will release its earnings report on November 4.
Micron Technology, Inc. (NASDAQ: MU)
Despite Rosenblatt raising its price target from $1,500 to $1,900 on October 6, citing the company’s stronger-than-expected quarterly results, the likelihood of raised guidance, and repurchase potential, Micron’s stock declined along with other memory chip manufacturers. Memory chip makers had initially risen with the broader market in early October, but the gains eased as sentiment weakened during the week.
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