Semiconductor stocks experienced a decline in early October 2026 following reports that OpenAI's annualized revenue run rate reached $50 billion, falling short of market expectations of $70 billion. On October 8, the Philadelphia Semiconductor Index dropped by approximately 3.4%.
Individual chip manufacturers saw significant losses on October 8, with Intel shares falling 5.3%, Micron declining by 4.8%, and Broadcom dropping 4.3%. Meanwhile, TSMC reported record third-quarter revenue of $46.7 billion, representing a 50% year-on-year increase.
On October 12, the CEOs of Broadcom and Intel identified rising financing costs and access to capital as potential constraints for AI infrastructure development. While near-term demand remains, executives expressed concerns regarding the long-term affordability of hardware for customers.
Goldman Sachs forecasts that US hyperscalers will allocate $800 billion to capital expenditures in 2026, with that figure projected to rise to $1.1 trillion in 2027. Investors are closely monitoring these spending plans for potential budget adjustments.
