On October 20, the semiconductor sector exhibited pronounced divergence: Leading chipmakers delivered starkly contrasting performances. $Advanced Micro Devices(AMD)$ shares surged 3.2% to hit a record high, followed by $Intel(INTC)$ climbing 3% to reach a new all-time peak. Meanwhile, AI chip leader $NVIDIA(NVDA)$ saw only a marginal 0.3% dip, remaining largely stable.
Meanwhile, software giant $Oracle(ORCL)$ faced a chain reaction triggered by a credit rating downgrade, putting pressure on some tech stocks.
$Apple(AAPL)$ bucked the trend with a 4% surge, hitting a new high and driving a broad rebound in the consumer electronics sector.
AMD's Strong Breakthrough: Order Demand, Customer Portfolio, and Institutional Support Drive Growth
$Advanced Micro Devices (AMD)$'s stock price surged on the back of multiple substantial positive factors, which precisely aligned with the market's hot expectations.
Strong Customer Demand Drives Accelerated Expansion by $Meta Platforms, Inc.(META)$, $Oracle(ORCL)$, and $Amazon.com(AMZN)$
According to institutional monitoring, Meta and Oracle have initiated preparations for mass production of the Mi450 chip, while Amazon and TikTok are accelerating their evaluation processes for the product. As AMD's key offering in the AI computing sector, the positive response from its customers essentially validates the company's potential for monetizing its AI capabilities.
Order details further highlight the potential: Amazon plans to procure M1355X chips in 2026 and deploy Mi450 racks in the third quarter of the same year; TikTok intends to increase its AMD GPU procurement share from 10% in 2025 to 30% in 2026.
Institutional Optimistic Assessment: Risk-Reward Ratio Optimized, Clear Short-Term Catalysts
Multiple Wall Street institutions have issued positive signals: Loop Capital upgraded AMD to a Buy rating and forecasts sustained growth in product shipments through 2027; ISI added it to its tactical overweight list, citing the fading impact of the U.S. Department of Justice's lawsuit against Epic Games.
Additionally, AMD will release its financial results at the end of October and hold an analyst conference in November, where it is expected to disclose specific data on the Mi450. This provides a clear short-term catalyst timeline for investors.
Intel Rides the Wave: Industry Sentiment and Options Market Converge
Intel's stock price rose 3% and hit a record high, driven by relatively straightforward factors. On one hand, the entire semiconductor sector was boosted by AMD's performance, with capital flowing along the AI computing chain toward chip giants. On the other hand, options trading data showed 28 call options on Intel were traded that day, reflecting market participants' optimistic bets.
Despite the absence of specific positive catalysts, this rally stems more from sector-wide coordination and capital speculation. Its sustainability hinges on subsequent earnings reports and product developments.
NVIDIA Stabilizes in the Short Term: Previous Gains Too Large, Awaiting New Catalysts
As a key player in the AI chip sector, NVIDIA saw only a slight 0.3% decline that day, trending toward flat trading, primarily due to its substantial gains accumulated earlier.
From 2024 to mid-2025, NVIDIA achieved significant profits driven by AI GPU orders, leading to a substantial surge in its stock price. Currently, market expectations for GPU demand in 2026 are already quite robust. With a lack of major near-term catalysts, investors are adopting a wait-and-see approach, awaiting signals such as new orders or chip releases.
However, some institutions like Clev maintain a long-term bullish stance, emphasizing the potential for GPU demand in 2026, but sentiment factors currently dominate fundamentals.
Software Sector Under Pressure: Oracle Rating Downgraded, NeoCloud Stocks See Collective Pullback
Amid fierce competition among semiconductor giants, the software sector suffered a heavy blow—JPMorgan downgraded Oracle from Overweight to Neutral, sending its stock tumbling 4.9%.
Reason for downgrade: High AI investment levels, unclear financing pathways
JPMorgan's core concern lies in Oracle's annual capital expenditure exceeding $35 billion for AI infrastructure development, yet lacking a clear financing strategy.
Despite Oracle's projection that its cloud infrastructure revenue will reach $166 billion by 2030 with a compound annual growth rate of 75%, debt investors have expressed concerns about funding chain risks.
Ripple Effect: CRWV and NBIS Decline in Tandem, NeoCloud Risk Escalates
Oracle's adjustments directly impacted the NeoCloud sector: $CoreWeave, Inc.(CRWV)$ plunged 7%, $NEBIUS(NBIS)$ retreated 4%, with the entire sector facing pressure.
Market analysis suggests that Meta's SPV transaction last week may reduce its reliance on external cloud computing services, while Oracle's financing challenges could drive up industry-wide costs, potentially impacting NeoCloud enterprises' capital expenditure plans. In short, this development has eroded investor confidence in companies dependent on third-party cloud computing technology providers.
Consumer Electronics Sector Rebounds: Apple Leads Gains, ON Capitalizes on Momentum
Amidst turbulence within the tech sector, the consumer electronics segment achieved a turnaround, primarily driven by Apple's robust performance.
Apple's Dual Support: Strong Sales and Institutional Endorsement
$Apple (AAPL)$ shares surged 4% to a record high, supported by two key factors:
Sales figures are impressive: According to a Counterpoint Research report, initial sales of the iPhone 17 in China and the U.S. increased by 14% compared to the iPhone 16. In the Chinese market, the iPhone Air is in such high demand that supply cannot keep up, highlighting the brand's influence.
Institutional Positive Ratings: Loop Capital upgraded to Buy, anticipating sustained iPhone shipment growth through 2027; ISI added to tactical overweights following resolution of negative litigation impacts.
ON Semiconductor Benefits: Opportunities for Supply Chain Substitution Emerge
Another semiconductor company, $ON Semiconductor(ON)$ rose 4.5% due to unexpected constraints on its competitors: Nexperia (headquartered in the Netherlands), owned by China's Yidong, was added to the U.S. restricted list, causing disruptions in automotive discrete chip supplies. ON, as an alternative supplier, swiftly filled the gap, leading to a surge in demand. This "opponent's setback, our gain" scenario is both sudden and grounded in solid fundamentals.
Comments