Key Highlights

● Sandisk slipped on Friday, closing around $1,581.82, as memory-chip stocks failed to join the tech rebound.

● Micron slipped to $1,029.00, AMD fell $12.58 to $608.10 and Nvidia slipped $1.20 to $229.28 on Friday.

● Sandisk makes flash memory and storage and had no company-specific news, moving with a semiconductor group that lagged.

● A media report said Apple told suppliers to cut iPhone 18 Pro orders, citing weaker Demand after memory-driven price increases.

Sandisk (NASDAQ:SNDK) slipped on Friday, closing around $1,581.82, as memory-chip stocks failed to join a rebound in technology shares. The flash memory and storage maker had no company-specific news. Rather, it moved with a semiconductor group that lagged for a second straight session.

Micron (NASDAQ:MU) Technology, the largest US memory maker, also edged lower, slipping to $1,029.00 after a steep drop on Thursday. AMD (NASDAQ:AMD) fell $12.58 to $608.10, and Nvidia (NASDAQ:NVDA) slipped $1.20 to $229.28. The PHLX Semiconductor index declined on the day and had a sharply negative week.

The OpenAI overhang

The weakness traces back to Thursday, when 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. Because the AI build-out depends on companies like OpenAI being able to pay for enormous amounts of computing capacity, the report raised fresh questions about the pace of spending on chips, including the memory used in AI servers. Nvidia, Broadcom (NASDAQ:AVGO), AMD and Micron all fell sharply on Thursday.

By Friday, investors had rotated toward software. Software and Cybersecurity stocks rallied strongly, and Microsoft (NASDAQ:MSFT) rose $12.46 to $535.07, while chips stayed on the sidelines. Reports that OpenAI expects to reach or exceed $70 billion in annualized revenue by year-end did little to lift the semiconductor group.

Michael Monaghan of Founder ETFs said, "Chips have been this year's story". Memory makers have been among the biggest beneficiaries of that story, which helps explain why they can be quick to fall when doubts emerge.

Memory costs and the iPhone

Another memory-related headline also weighed on sentiment. A media report said Apple (NASDAQ:AAPL) told suppliers to cut iPhone 18 Pro component orders for October, citing weaker-than-expected demand after price increases driven in part by higher memory costs. Apple fell $3.78 to $336.64, and supplier Skyworks Solutions (NASDAQ:SWKS) also dropped. The report underscored that rising memory prices, a positive for memory makers' revenue, can also pressure demand for the devices that use those chips.

Broader market higher

The wider market rose. The Nasdaq Composite gained 172.83 points to 27,366.17, the S&P 500 added 46.18 points to 7,811.54 and the Dow Jones Industrial Average climbed 423.31 points to 51,654.95. Real estate and health care led the S&P 500, while technology rose only modestly as chip weakness offset the software rally.

Rates remain a hurdle for richly valued growth stocks. The 10-year Treasury Yield held near a 24-year high, and the Federal Reserve raised rates in September for the first time since 2023. Governor Christopher Waller said Thursday he anticipates additional hikes to bring Inflation back to the Fed's goal.

Deutsche Bank (NYSE:DB)'s George Saravelos has warned that "The biggest systemic risk in the market next year is not France but 'something going wrong' in the AI ecosystem".

TSMC's October 15 Results and OpenAI Clarity Will Matter Most for Memory and Chip Stocks

On the macro side, US stocks trade on Monday, October 12, while the Bond Market is closed for Columbus Day. September Consumer Price Index data lands Wednesday, October 14, bank Earnings run October 13–16, and the Federal Reserve meets October 27–28. TSMC (NYSE:TSM) reports results on Thursday, October 15, offering the next major read on AI chip demand and Manufacturing capacity. Any further clarity on OpenAI's revenue trajectory will also matter for memory and chip stocks.