Market Overview
On 9 July 2026 U.S. semiconductor equities recovered after a brief sell‑off, with the sector broadly regaining ground lost earlier in the week. The rebound was driven by strong gains in several marquee names: Micron Technology and Advanced Micro Devices each rose more than 7.5%, Intel climbed nearly 5%, Applied Materials surged 9.5%, Lumentum added 12%, and Coherent and Marvell Technology each advanced over 6% by 10:20 a.m. ET. Broadcom edged up 0.34%, Taiwan Semiconductor Manufacturing (TSMC) gained 1%, and SanDisk jumped 6.9%.
Meta Platforms AI Compute Expansion
Reuters reported that Meta Platforms plans to double its dedicated AI computing capacity from 7 gigawatts in 2026 to 14 gigawatts in 2027. An internal memo disclosed that Meta’s custom‑designed AI chip, codenamed “Iris,” will begin production in September 2026. The chip uses a custom silicon process and completed a six‑week test cycle without issues. Meta is collaborating with Broadcom on chip design, while TSMC will handle manufacturing. Multi‑year supply agreements have been secured with Samsung for memory chips, SanDisk for flash storage, and Sumitomo Electric for fiber‑optic components.
Chinese Semiconductor Rally and IPO
Chinese semiconductor equities rallied sharply, lifting the CSI Semiconductor Index 8.8% for the session. Changxin Memory Technologies (CXMT), the world’s fourth‑largest DRAM producer with a 7.7% share of the global market in the prior year, announced that it will commence book‑building for a Shanghai IPO on 15 July. The offering aims to raise 29.5 billion yuan, roughly $4.34 billion.
Samsung Earnings Context
Samsung Electronics posted forecast‑beating results that nonetheless triggered a steep share price decline. The company projected second‑quarter operating profit of 89.4 trillion won (about $58.44 billion), roughly 19 times its profit a year earlier and exceeding the LSEG SmartEstimate of 87.3 trillion won. Revenue is expected to rise 129% to 171 trillion won. Analysts suggested the sell‑off reflected that much of the positive news had already been priced in and raised broader questions about the sustainability of AI‑driven demand for chips.
Sector Implications
The combined news of Meta’s expanded AI compute commitment, the Chinese IPO, and Samsung’s earnings underscores ongoing volatility in the semiconductor sector. While AI‑related demand remains a key growth driver, elevated memory‑chip prices and concerns about demand pacing persist. The market’s quick rebound indicates that investor sentiment remains supportive of the sector’s longer‑term growth narrative.