Chip stocks slide as fears mount over AI investment scale

Semiconductor stocks took a sharp hit in early October 2026. The trigger was a single number about OpenAI’s revenue that came in well below what the market had penciled in. A $20 billion gap rattles the AI trade On October 8, the Financial Times reported that OpenAI’s annualized revenue run rate was approaching $50 billion. Earlier market assumptions had pegged that figure at around $70 billion. The reaction was swift. The Philadelphia Semiconductor Index, a widely watched basket of chip stocks, fell approximately 3.4% on October 8. Intel took one of the heaviest blows, dropping 5.3%. Micron slid nearly 4.8%, while Broadcom lost 4.3%. Nvidia declined by almost 3%. The logic behind the selling is fairly direct. OpenAI’s revenue helps fund the data centers that buy chips from these companies. If revenue grows slower than expected, the appetite for future hardware purchases could cool too. Record results, muted applause TSMC, the contract manufacturer that produces chips for much of the industry, reported record third-quarter revenue of $46.7 billion, a 50% increase year-on-year. The reaction was muted, with investors appearing more focused on whether current spending levels can be su...