Key Highlights

● Nvidia closed Friday at $229.28, down $1.20, on the wrong side of a rising market, after closing at $230.48 Thursday.

● Firmus, an Nvidia-backed Australian data-center company, withdrew an IPO that would have raised roughly US$4.95 billion.

● The PHLX Semiconductor index slipped, AMD fell $12.58 to $608.10 and Micron eased to $1,029.00 on Friday.

● TSMC, which manufactures Nvidia's chips, reports on Thursday, October 15, offering a fresh read on AI demand.

Nvidia (NASDAQ:NVDA) closed Friday at $229.28, down $1.20, a small decline that nonetheless left the world's best-known AI chipmaker on the wrong side of a rising market. The stock had already fallen on Thursday, closing at $230.48, and it ended the week lower as well.

There was no major company announcement. Rather, Nvidia was caught in a broader rotation: investors bought back software and cloud stocks after Thursday's AI scare but stayed cautious on the hardware names most exposed to data-center spending.

The Firmus decision

One piece of news on the periphery added to the cautious mood. Firmus, an Australian data-center company backed by Nvidia, withdrew its planned initial public offering. The deal would have raised roughly A$7.1 billion, or about US$4.95 billion, and valued the company at about $30.6 billion, according to market data. Firmus cited market Volatility and poor demand.

In a statement, the Firmus board said "proceeding with the offer was not in the best interests of the company and its shareholders." The company was turning to private Capital instead, according to market data.

The pulled offering was a reminder that appetite for new AI infrastructure deals is not unlimited, especially after a week in which questions about AI Revenue moved markets.

The OpenAI overhang

Those questions came to a head on Thursday. A media report said that OpenAI's annualized revenue was about $50 billion at the end of September, roughly $20 billion below a figure that had circulated in late September. Nvidia, Oracle (NYSE:ORCL), Broadcom (NASDAQ:AVGO), AMD (NASDAQ:AMD) and CoreWeave (NASDAQ:CRWV) all slid. On Friday, reports that OpenAI expects to reach $70 billion or more by year-end calmed nerves, and software and Cybersecurity stocks rallied strongly.

Chips did not join in. The PHLX Semiconductor Index slipped, AMD fell $12.58 to $608.10 and Micron (NASDAQ:MU) eased to $1,029.00. Semiconductor stocks were among the weakest parts of the market for the week, while software finished well ahead.

"Chips have been this year's story," Michael Monaghan, portfolio manager at Founder ETFs, said. Other strategists are more wary. George Saravelos of Deutsche Bank (NYSE:DB) has said "The biggest systemic risk in the market next year is not France but 'something going wrong' in the AI ecosystem."

The wider market

Despite the chip weakness, the major indexes rose. The Nasdaq-100 gained 157.34 points to 30,883.15, the Nasdaq Composite added 172.83 points to 27,366.17 and the S&P 500 rose 46.18 points to 7,811.54, about seven points shy of Tuesday's record close. The Dow climbed 423.31 points to 51,654.95. Volume was light, at about 14.37 billion shares against a 20-day average of 17.76 billion.

Rates are another headwind for high-valuation tech. The 10-year Treasury Yield held near a 24-year high, and the Fed, which raised rates in September for the first time since 2023, has signaled it may tighten again. Fed Governor Christopher Waller said: "The hikes do not need to come at consecutive meetings, but they should be in place in an acceptable period of time."

TSMC's October 15 Report and AI Financing News Are Nvidia's Next Reads on Demand

Monday, October 12 is Columbus Day, with stocks open and bonds closed. September consumer prices arrive on Wednesday, October 14, bank Earnings run from October 13 to 16 and the Fed meets on October 27 and 28. TSMC (NYSE:TSM), which manufactures Nvidia's chips, reports on Thursday, October 15, offering a fresh read on AI demand. Any update on OpenAI's revenue path or other AI infrastructure financings will also be watched.