Semiconductor Stocks Retreat as AI Revenue Projections Face Scrutiny

The PHLX Semiconductor Index saw a sharp reversal following a Financial Times report suggesting OpenAI’s revenue is nearing $50 billion, significantly below the $70 billion figure previously circulated in market rumors. Because sector valuations are tethered to aggressive AI growth forecasts, this discrepancy triggered a broad sell-off. The pressure was compounded by rising long-term Treasury yields and crude oil prices, both of which weigh heavily on high-growth technology stocks sensitive to discount rates.

Individual performance varied significantly across the sector. Taiwan Semiconductor Manufacturing Company faced volatility as investors parsed Elon Musk’s comments regarding a potential role for the manufacturer in his Texas-based Terafab complex. Meanwhile, Intel Corporation shares struggled amid uncertainty regarding its future involvement in the same project. In the legal arena, Arm Holdings remained in focus as a federal jury trial in Delaware regarding licensing agreements with Qualcomm reached its conclusion. Despite these headwinds, the broader sector remains up 73% year-to-date, though the recent pullback highlights growing investor sensitivity to the actual financial output of the artificial intelligence boom.