Micron falls 4% before the open as chip stocks slide on AI funding concerns
Key Facts
Micron shares fell 4% before the open on Thursday, October 15, 2026, in a decline that also hit Nvidia and AMD, according to data tracked by Inviz. Nvidia lost 1.8% in the same trading period, while AMD fell 2.5%, amid mounting concerns over financing AI investments reported by Reuters. The pressure extended to CoreWeave, whose shares fell a further 4.5% before the open, according to the platform. The decline followed a 15% drop on Wednesday, extending its losses alongside falling chip stocks. The selloff coincided with data showing U.S. inflation accelerated in September, with traders pricing in a 27% probability of an interest rate increase in October.
Annual U.S. inflation rose to 3.7% in September from 3.4% in August, the Associated Press reported, citing the U.S. Labor Department on Wednesday. On a monthly basis, the seasonally adjusted consumer price index rose 0.6%, according to the Bureau of Labor Statistics release, alongside the increase in the headline annual rate. Gasoline prices rose 9.1% in September, according to the bureau's price breakdown for the same month. Core inflation, which excludes food and energy prices, stood at 2.6% year on year, according to the official release. These figures formed the backdrop to Thursday's trading, when Reuters reported growing investor concern over financing AI spending and a decline in Nasdaq futures.
At CoreWeave, financial disclosures showed rising interest costs alongside substantial cash used in investing activities during the first half of 2026. Net interest expense increased by $373 million in the second quarter compared with the same period a year earlier, according to the company's filing with the U.S. Securities and Exchange Commission. That increase represented year-on-year growth of 140% in the item, according to the filing, which covered financial results for the quarter ended in June. Net cash used in investing activities during the first half totaled $14.9 billion, according to the same document. Pressure on the company's shares coincided with broader concerns over financing AI investments, which Reuters linked to the decline in futures on Thursday morning.
On contracted business, CoreWeave said its revenue backlog stood at about $104 billion at the end of June when it announced its second-quarter results. Recognition of that backlog as revenue depends on meeting delivery and service availability requirements, according to the definition the company uses in its earnings release. Those conditions include requirements to perform contracted services before the associated amounts are included in recognized revenue, according to the company's definition of backlog. Michael Intrator, CoreWeave's chief executive, said in comments on the results: "Customer demand is accelerating as enterprise adoption of our services expands." His description of demand trends appeared in the same earnings release that detailed the size of contracted business, amid expanding enterprise use of the company's services.
In chip manufacturing, Taiwan Semiconductor Manufacturing reported year-on-year growth of 68.7% in net profit and diluted earnings per share in the third quarter. The company's chief financial officer attributed the period's performance to "strong demand for our advanced process technologies," according to its earnings release. Alongside its quarterly results, the company forecast fourth-quarter revenue of between $52.3 billion and $54.3 billion. The growth comparisons for profit and earnings per share were against the same period a year earlier, while the sales forecast covered the quarter following the results announcement. The company's report of strong demand for its technologies came as chip stocks faced pressure tied to investor concerns over financing AI investments.
Across the broader market, Nasdaq futures fell more than 1% on Thursday morning, according to Reuters, as concerns over financing AI investments mounted. In interest rate markets, the agency cited CME Group's interest rate expectations tracking tool for traders' pricing of the probability of a Federal Reserve rate increase in October. The Federal Reserve's schedule lists the next Federal Open Market Committee meeting for October 27 and 28, according to dates published by the U.S. central bank. After that meeting, the Bureau of Labor Statistics will release October consumer price data on Tuesday, November 10, 2026, according to the date in the inflation release. The bureau set the release for 8:30 a.m. U.S. Eastern Time, following the September reading published on Wednesday.