AI Revenue Questions Pull Semiconductor Stocks Off October Highs

VANCOUVER, BC, Oct. 10, 2026 /PRNewswire/ -- Stock Preachers News Commentary - Semiconductor equities began October on firm footing, with the iShares Semiconductor ETF advancing for five consecutive sessions and the sector's largest company reaching a record high, before retreating through the week ended October 9. Sentiment shifted on Thursday, when the Financial Times reported that OpenAI had told investors its annualized revenue was nearing $50 billion at the end of September, below the approximately $70 billion figure that had been cited in media reports. Because semiconductor valuations are closely tied to expectations for AI infrastructure spending, the report weighed on the group, and the PHLX Semiconductor Index finished the week lower while the broader market was more resilient. Active Companies from around the markets with current developments this week include: Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM), NVIDIA Corporation (NASDAQ: NVDA), Intel Corporation (NASDAQ: INTC), Arm Holdings plc (NASDAQ: ARM), Micron Technology, Inc. (NASDAQ: MU).

The pullback follows a period of substantial gains. The PHLX Semiconductor Index was up 73% year to date as of late September, and several of the sector's largest constituents have recorded triple-digit gains in 2026. Higher long-term Treasury yields and a rise in crude oil prices added pressure midweek, as higher discount rates tend to weigh most on companies valued on long-term growth expectations.

Company-specific developments shaped performance within the group. Two companies reported record milestones early in the week, while others faced open questions regarding a manufacturing partnership, ongoing litigation and the sustainability of AI-related demand.

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In other industry developments and happenings in the market this week include:

Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM)

TSMC shares reached a record high on October 5 after Elon Musk confirmed early-stage discussions about a role for the company in his planned Terafab chip complex in Texas, calling them "just discussions." On October 8 the company reported September revenue of NT$511.86 billion, up 54.6% from a year earlier and down 0.6% from August, bringing revenue for the first nine months of 2026 to NT$3.90 trillion, up 41.1%.

NVIDIA Corporation (NASDAQ: NVDA)

NVIDIA shares reached a record high on October 5, bringing their year-to-date gain to approximately 24.8% and their advance since the August 26 earnings report to approximately 14%. The company has also shown relative strength during recent sector weakness: on September 28, when semiconductor shares declined on AI safety concerns, NVIDIA advanced after announcing a $150 billion share buyback authorization and releasing two open-source tools designed to help control AI agents.

Intel Corporation (NASDAQ: INTC)

Intel shares declined on October 5 after Musk indicated that TSMC could participate in Terafab, a project Intel joined as a partner in April. On October 8 Musk said his companies will build and operate the Texas complex and that another chipmaker could at most sublease part of the site. Intel has said it will remain involved, although the scope of its role has not been finalized. Despite the decline, Intel shares were up approximately 215% year to date as of the October 5 close.

Arm Holdings plc (NASDAQ: ARM)

Arm shares declined during a five-day jury trial in federal court in Wilmington, Delaware, where Qualcomm alleges that Arm breached their licensing agreements and sought to undermine Qualcomm's dealings with Meta Platforms. Arm denies the claims. The case went to the jury on October 9, and the judge has not yet ruled on whether a clause that could let Qualcomm stop paying royalties for five years is enforceable. Arm reports earnings on November 4.

Micron Technology, Inc. (NASDAQ: MU)

Micron shares declined alongside other memory producers despite Rosenblatt raising its price target to $1,900 from $1,500 on October 6, citing a beat-and-raise quarter and the potential for buybacks. Memory producers had advanced with the broader group in early October before sentiment shifted later in the week.

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