AI Chip Stocks Fall; Apple Expands AI in China

Key Takeaways

• Chip stocks fell for seven straight days, with SOXX dropping 10.2% in one week and Intel and Micron both falling over 9%.
• CoreWeave shares plunged 15% amid distressed bond prices, and seven stocks in the AIQ ETF fell more than 10% in about a week.
• TSMC raised guidance to a 44% sales increase despite its shares still falling, easing some concerns about slowing AI chip demand.
• Apple plans to launch Apple Intelligence in China in December via iOS 27.3, but the new Siri AI assistant will be excluded.
• Labelbox raised over $100 million in Series E financing to expand its Horizon platform and Recursion Managed Agents for enterprise use.
• OutRival reduced a 5,000-token prompt by 51% using tokenmaxxing techniques, cutting AI token use in half.
• A new MULTIFINGROUND benchmark shows AI models miss at least one target fact in 26.6% to 41.9% of correctly recognized financial data groups across English, French, and Greek.
• JPMorgan cut its Tencent target price from HK$690 to HK$625 due to rising AI-related depreciation and costs.
• Vercel's Jev became its fastest adopted AI model ever, with open source models now accounting for over 70% of tokens processed through their gateway.
• A gaming decompilation community is shutting down its main index as AI tools like GPT 6 Astra and Claude Opus 5.5 enable rushed, unfinished game ports.

Is the AI Bubble Bursting as Chip Stocks Plunge?

Chipmaker stocks have fallen for seven straight days across Asia and the West. CoreWeave bond prices have soared to distressed levels, raising concerns about AI debt. TSMC reported record earnings and raised guidance to a 44% sales increase, yet its shares still fell. Inflation fears and rising interest rates are adding pressure on the technology sector. Some experts believe this is a temporary correction, not a full AI market collapse.

AI Chip Selloff Deepens as CoreWeave Debt Worries Grow

The iShares Semiconductor ETF (SOXX) fell 10.2% in one week, with Intel and Micron dropping over 9%. CoreWeave shares plunged 15% after its bond prices dropped sharply. Apple plans to launch Apple Intelligence in China in December through an iOS 27.3 update, though the new Siri AI assistant will be excluded. TSMC and ASML reported strong results that eased concerns about slowing AI chip demand. The Invesco QQQ Trust fell 3.1% while Rocket Lab was the biggest weekly loser at down 19.2%.

OutRival Explains How to Use Fewer AI Tokens Effectively

OutRival's Alvin Pane describes tokenmaxxing as a way to cut AI token use in half. His team reduced a 5,000-token prompt by 51% using a ceiling test and an optimizer. They found 443 regressions but 2,463 improvements by running production models against each other. The key steps include maximizing cache hits, shrinking prompts with search tools, and routing simple tasks to cheaper models. Pane advises teams to measure their most expensive task first before making changes.

New Benchmark Shows AI Struggles With Multilingual Financial Data

Researchers created MULTIFINGROUND, a benchmark testing AI models on financial reports in English, French, and Greek. It was built from FY2025 disclosures of 90 companies using a shared accounting taxonomy. Across 15 models, eight achieved 97.3% to 99.4% concept recognition accuracy. However, these same models missed at least one target fact in 26.6% to 41.9% of correctly recognized groups. The study shows that recognizing financial concepts does not guarantee finding all the supporting numbers.

JPMorgan Lowers Tencent Price Target as AI Costs Rise

JPMorgan cut its Tencent target price from HK$690 to HK$625 and lowered earnings forecasts for 2026 and 2027. The bank cited rising AI-related depreciation and costs that extend the payback timeline. Tencent's AI strategy involves building proprietary models, monetizing through enterprise tools and cloud services, and expanding AI agents across WeChat. JPMorgan still rates Tencent as Overweight because the core business can absorb AI costs, valuation remains low, and WeChat AI agent potential could exceed expectations.

Dollar may weaken in 2027 as midterms and AI investment shift, analysts say

Crédit Agricole forecasts Dollar weakness over the next six to twelve months. The bank links this to slowing US growth, possible Federal Reserve rate cuts, and a fading AI investment boom. A Democratic gain in the November midterms could add pressure through legislative gridlock. The forecast does not expect an immediate fall after the 3 November vote. Historical election data is seen as a guide, not a firm rule.

Labelbox raises over $100M for AI training and enterprise agent tools

Labelbox raised more than $100 million in Series E financing led by Infinitum Partners. The company will expand its Horizon platform for reinforcement learning and its Recursion Managed Agents for enterprise use. Labelbox serves over 400 customers, including more than 90% of leading US AI labs. It also uses more than 50 agents internally across engineering, research, and other teams. Recursion Managed Agents opened to enterprise customers in early October.

Charles Schwab CEO says AI trading agents need clear rules

Charles Schwab CEO Rick Wurster says AI agents should only trade for users if clear rules are set first. He warns that handing full control to an agent is risky. Schwab is launching Charley, a new AI-powered conversational assistant to help clients navigate the platform. The company reported strong third quarter results, with adjusted earnings up 29% and record revenue of $7.17 billion. Core net new assets reached $190.4 billion, up 38% from a year ago.

AI decompilation wave forces major gaming community to shut down

A large decompilation community is closing its main index due to a surge in AI-powered game decompilations and ports. Tools like GPT 6 Astra and Claude Opus 5.5 have made decompiling games much faster. The community says bad actors are using AI to rush unfinished ports into existing projects. The site decomp.dev will still exist for tracking projects, but new project submissions are disabled. The community fears this trend harms collaboration and project quality.

CoreWeave is not the only AI stock losing value

CoreWeave has become a symbol of slipping AI stocks, but it is not alone. Seven stocks in the Global X Artificial Intelligence and Technology ETF (AIQ) fell more than 10% in about a week. The analysis covers data from 9 October. The ETF holds $10.5 billion in assets. The decline shows broader weakness across several AI-related companies.

Jev becomes Vercel's fastest adopted AI model

Vercel released Jev in limited release on September 15, and it became their fastest adopted AI model ever. Jev is a lightweight model designed to choose between a few predetermined outputs, making it cheaper and faster than alternatives like Sonnet. This approach makes it ideal for classifying large quantities of data quickly. Vercel's data also shows that open source models now account for over 70% of tokens processed through their gateway, and spending on frontier labs has grown tenfold.

Sources

• Is the Bottom Falling Out of the AI Trade?
• Stocktwits AI Roundup: AI Chip Selloff Deepens, CoreWeave Debt Concerns And Apple’s China AI Launch
• OutRival says tokenmaxxing means doing more with fewer tokens
• Recognition Is Not Grounding: Benchmarking Multilingual Financial Evidence Extraction
• JPMorgan Cuts Tencent Target Price to HK$625 as AI Investment Payback Timeline Extends
• US Midterms And Dollar Forecast: AI Investment, Congress Shape 2027 Risks
• Labelbox Raises Over $100M to Expand AI Training and Enterprise Agents
• Charles Schwab CEO: AI agents trading on your behalf need 'rules of the road'
• A Massive Decompilation Community Is Shutting Down, Thanks to the Deluge of AI Decomps and Ports
• CoreWeave Isn't The Only Sputtering AI Stock
• Jev is Vercel's fastest-adopted AI model ever