Chip Stocks Rally After Eight Session Selloff
Premarket gains on Wednesday recovered about $274 billion of the roughly $1.6 trillion lost by 26 large U.S.-listed AI hardware stocks over the past month.
Summary Generated with AI
The Philadelphia Semiconductor Index rallied 2% on Wednesday after an eight-session selloff, with Benzinga tying the rebound to SpaceX's third-quarter report showing its AI business turning profitable.
The Philadelphia Semiconductor Index rallied 2% on Wednesday after an eight-session selloff, with Benzinga tying the rebound to SpaceX's third-quarter report showing its AI business turning profitable. Super Micro Computer raised its fiscal first-quarter revenue guidance, and its shares jumped 9.6%.
What happened
Benzinga reported on October 21, 2026, that 26 of the largest U.S.-listed AI hardware stocks lost roughly $1.6 trillion in combined market value over the past month. Premarket gains on Wednesday put back about $274 billion of that, roughly 17% of the loss. Benzinga tied the rebound in chip, server and memory stocks to SpaceX's third-quarter report, which showed its AI business turning profitable.
The Philadelphia Semiconductor Index rallied 2% on Wednesday after an eight-session selloff. A premarket figure is measured before regular trading opens, so the final tally for the day could differ.
Why it matters
The Philadelphia Semiconductor Index closed Tuesday down 14.6% from its October 6 close.
Guidance is a company's forecast for its own results. Super Micro Computer Inc. (NASDAQ: SMCI) raised its fiscal first-quarter revenue guidance to between $18.5 billion and $19.5 billion. Its previous range was $14.5 billion to $15.5 billion. Super Micro also forecast quarterly revenue and profit margin above Wall Street's estimates. Its shares jumped 9.6% after the improved outlook.
By the numbers
- 26 of the largest U.S.-listed AI hardware stocks lost roughly $1.6 trillion in combined market value over the past month, according to Benzinga calculations based on TradingView data.
- Premarket gains on Wednesday recovered about $274 billion of that loss, roughly 17% of what the stocks had given up.
- Nvidia (NASDAQ: NVDA) shares advanced 2.54% on Wednesday, closing at $221.97.
Topics Market CommentarySemiconductorsUnited States
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