Why it matters
- The Philadelphia Semiconductor Index rose 2.82% to 11,083.47 on Monday, Oct. 26, after Anthropic filed for an IPO, Yahoo Finance data show. It is still 12.2% below its Sept. 30 close and 24.3% below its June 22 close of 14,634.72.
- Tech earnings are rising faster than tech prices. FactSet said in its Oct. 23 report that the S&P 500 tech sector trades at 19.6 times expected earnings for the next 12 months, below its 5-year average of 25.5. Chip earnings are up 131% from a year ago.
- The bounce was narrow. Nvidia, Broadcom and Micron rose, but Meta fell 1.88% after announcing a stock sale to pay for AI spending, and Alphabet dropped 1.06%. Meta is down 13.0% since Sept. 30.
Analysis: this piece includes our interpretation of the facts reported.
Chip stocks led a rally on Monday, Oct. 26, but one day did not undo October's slide. The Philadelphia Semiconductor Index (SOX) rose 2.82% to 11,083.47 after Anthropic publicly filed for an initial public offering, according to Yahoo Finance data. The index is still down 12.2% from its Sept. 30 close and 24.3% below its June 22 close of 14,634.72, the highest in the past six months.
The slide has made tech cheaper relative to profits. The S&P 500's information technology sector traded at 19.6 times forward 12-month earnings, FactSet said in its Oct. 23 Earnings Insight report. That is below the sector's 5-year average of 25.5 and its 10-year average of 23.1.
How much have AI and chip stocks fallen since September?
Most of the big AI names are lower for the quarter so far, even after Monday's gains. The table compares Sept. 30 and Oct. 26 closes.
| Stock or index | Sept. 30 close | Oct. 26 close | Mon., Oct. 26 | Since Sept. 30 |
|---|---|---|---|---|
| Philadelphia Semiconductor Index | 12,628.62 | 11,083.47 | +2.82% | -12.2% |
| Nvidia | $228.38 | $216.00 | +2.39% | -5.4% |
| Broadcom | $351.19 | $329.17 | +2.33% | -6.3% |
| Micron Technology | $1,065.11 | $903.70 | +2.98% | -15.2% |
| Taiwan Semiconductor (U.S. shares) | $456.19 | $424.37 | +1.40% | -7.0% |
| Meta Platforms | $725.18 | $630.56 | -1.88% | -13.0% |
| Alphabet (Class A) | $344.08 | $316.80 | -1.06% | -7.9% |
| Microsoft | $512.90 | $532.60 | +1.54% | +3.8% |
| Apple | $333.02 | $343.91 | -1.10% | +3.3% |
| S&P 500 | 7,651.54 | 7,676.77 | +0.70% | +0.3% |
| Nasdaq Composite | 26,861.06 | 26,169.38 | +0.82% | -2.6% |
Source: Yahoo Finance daily chart data. Changes are Global Terminal calculations from closing prices.
The S&P 500 is roughly flat since the end of September, while the chip index is down by double digits. Microsoft and Apple have gained. That gap shows how much of October's selling hit the companies that build and buy AI chips.
Why did chip stocks rise on Monday?
Anthropic's filing put AI back in focus, and chipmakers led the gains, Reuters reported. Nvidia gave the market its biggest lift, the Associated Press said. The rebound came after AI stocks slid earlier this month on worries that debt-funded spending is harder to justify as borrowing costs rise, Reuters said. The 10-year Treasury yield was 4.98% on Monday, the AP said.
Not every AI stock joined in. Meta said it plans to raise $35 billion by selling stock to help fund its AI investments and could raise another $60 billion through a new share class, the AP reported. Nvidia, AMD and Broadcom have said they may buy a combined $5 billion of the stock, the AP said. Meta closed down 1.88%.
Are tech stocks expensive right now?
Not by their own recent history. Tech's forward P/E of 19.6 is only slightly above the S&P 500's 18.7, FactSet data show. Consumer discretionary (23.7), consumer staples (23.3) and industrials (22.4) all trade at higher multiples.
The reason is earnings growth. FactSet said tech sector earnings are on track to rise 65.6% from a year earlier in the third quarter. The semiconductor industry is growing earnings 131%. Without it, the sector's growth rate would fall to 24.9%, FactSet said. A forward P/E uses analysts' estimates, so it falls if those estimates prove too high.
The next tests come this week. Alphabet and Microsoft report Wednesday, Oct. 28, and Amazon reports Thursday, Oct. 29, the AP said. The Fed decision is also due Wednesday.
For background on the slide, see our look at the October chip stock selloff and the SOX drawdown and how Korea's Kospi fell from its June peak. Follow live index levels on the world markets page.
Sources
- FactSet, Earnings Insight (Oct. 23, 2026)
- Reuters via The National, Wall St looks for best day in month as Anthropic's IPO filing propels AI stocks (Oct. 26, 2026)
- Associated Press via News4Jax, Wall Street rises as AI stocks keep swinging (Oct. 26, 2026)
- Yahoo Finance, daily chart data for the Philadelphia Semiconductor Index, S&P 500, Nasdaq Composite, Nvidia, Broadcom, Micron, Taiwan Semiconductor, Meta, Alphabet, Microsoft and Apple