Semiconductor stocks started October on a strong note, with iShares, Sem token issuance, and nductor all seeing gains for five consecutive trading days. The company with the largest market value in this sector also reached a record high. However, as of the week ending October 9th, related stocks subsequently fell. On Thursday, sentiment weakened after a report by The Financial Times that OpenAI informed investors its annualized revenue as of the end of September was close to $50 billion, lower than the approximately $70 billion mentioned in previous media reports. Since semiconductor valuations are closely linked to expectations for AI infrastructure spending, this report dragged down the sector. As a result, the PHLX semiconductor index closed lower on a weekly basis, while the broader market showed more resilience. Some of the active companies with recent developments this week include: Taiwan Semiconductor Manufacturing Company Limited ( NYSE : TSM ), NVIDIA Corporation ( NASDAQ : NVDA ), Intel Corporation ( NASDAQ : INTC ), Arm Holdings plc ( NASDAQ : ARM ), and Micron Technology, Inc. ( NASDAQ : MU ).
This pullback occurred after a significant upward trend in the previous period. The PHLX semiconductor index rose by 73% throughout the year as of late September, and several of the largest constituents in this sector have already recorded triple-digit gains in 2026. Rising long-term U.S. Treasury yields and increasing crude oil prices also exerted pressure during the week, as higher discount rates typically have a greater negative impact on companies whose valuations rely on long-term growth expectations.
Progress at the company level has also affected the performance within the sector. At the beginning of the week, two companies announced record-breaking milestones, while others are facing public doubts regarding manufacturing cooperation, ongoing litigation, and the sustainability of AI-related requirements.
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The following are the developments in other industries in the market this week:
Taiwan Integrated Circuit Manufacturing Co., Ltd. ( NYSE : TSM )
On October 5th, the stock price of TSMC reached a record high. Previously, Elon Musk confirmed that the two parties had engaged in early discussions regarding the role of the company within his planned Terafab chip park in Texas, stating that these discussions were "merely exploratory." On October 8th, the company announced its revenue for September, which amounted to NT$511.86 billion, a year-on-year increase of 54.6%, but a 0.6% decrease from August; the revenue for the first nine months of 2026 reached NT$3.90 trillion, with a year-on-year growth of 41.1%.
NVIDIA Corporation ( NASDAQ : NVDA )
On October 5th, NVIDIA's stock price reached a record high, marking a gain of about 24.8% since the beginning of the year and an increase of approximately 14% since the release of its financial report on August 26th. During the recent period of weakness in the sector, the company has also performed relatively strongly: on September 28th, while semiconductor stocks declined due to AI security concerns, NVIDIA's stock price rose after it announced a $150 billion stock repurchase authorization and released two open-source tools aimed at helping to control AI agents.
Intel Corporation ( NASDAQ : INTC )
On October 5th, after Elon Musk indicated that TSMC might participate in the Terafab project, Intel's stock price fell. Intel joined this project in April and became a partner. On October 8th, Musk stated that his company would build and operate the facility in Texas, with another chip manufacturer only being able to rent a portion of the space at most. Intel has said it will continue to participate, but the scope of its role has not yet been finalized. Despite the decline, as of the close on October 5th, Intel's stock price had still risen by about 215% for the year.
Arm Holdings plc ( NASDAQ : ARM )
During the five-day jury trial at the Federal Court in Wilmington, Delaware, the stock price of Arm fell. Qualcomm accused Arm of violating its licensing agreement and attempted to undermine the transaction between Qualcomm and Meta Platforms. Arm denied these accusations. The case was submitted to the jury for consideration on October 9th, and the judge has not yet made a ruling on whether one clause is enforceable; this clause could potentially allow Qualcomm to stop paying patent fees for a period of five years. Arm will release its financial report on November 4th.
Micron Technology Corporation ( NASDAQ : MU )
Although Rosenblatt raised its target price from $1,500 to $1,900 on October 6th, citing the company's performance exceeding expectations this quarter and the potential for upward guidance, as well as the potential for share repurchases, Micron's stock price still fell along with other memory chip manufacturers. Memory chip manufacturers had seen gains alongside the broader market at the beginning of October, but those gains faded as sentiment weakened throughout the week.
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