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Introduction

This article highlights the performances of each of the 6 sub-portfolios, totaling 26 constituents, in our model AI Semiconductor Stocks Portfolio for the week ending November 7th, in descending order, and for the month of October. The article also includes the focus of each portfolio, the performances of each sub-portfolio and of each of its constituents, and the catalyst(s) contributing to their stock price changes.

Our Model AI Semiconductor Portfolios
 

1. The Pure-Play Outsourced Semiconductor Assembly & Test Model Portfolio: up 3.5% w/e November 7th; up 22.3% in October
   • Focus: assemble chips into finished semiconductor components, tests for defects, and do the very specialized packaging of the chips for shipping. Amkor is positioned as a U.S.-friendly OSAT partner, benefiting from reshoring and CHIPS Act incentives, while ASE is more diversified, with EMS capabilities and a stronger presence in consumer electronics and networking.
   • Constituents: Amkor Technology (AMKR) and ASE Technology (ASX)
   • About Constituents: The global AI boom, smartphone refresh cycles, and automotive chip growth has resulted in a surge in demand for advanced semiconductor packaging, resulting in a corresponding surge in the stock prices of Amkor and ASE.
   • ​​​​​Price Change Catalyst: 
     • Amkor rose 7.7% due to a strong Q3 earnings beat, multiple analyst upgrades, and bullish sentiment around advanced packaging demand.
     • ASE fell 4.9% due to valuation pressure, sector rotation away from packaging and testing firms, and mixed analyst sentiment despite strong year-to-date performance and
2. The Integrated Device Manufacturer Model Portfolio: down 0.7%% w/e November 7th; up 0.7% in October
   • Focus: The constituents in this Portfolio do everything themselves in-house to control the entire production process of supplying memory, analog, mixed-signal, and embedded compute that are critical for AI servers, edge inference, and sensor fusion.
   • Constituents: Analog Devices (ADI); Infineon Technologies (IFNNY); Intel Corp. (INTC); Microchip Technology (MCHP); Micron Technology (MU); NXP Semiconductors (NXPI); STMicroelectronics (STM); and Texas Instruments (TXN)
   • About Constituents: Infineon, NXP, and STMicroelectronics are key suppliers for ADAS, powertrain electrification, and vehicle connectivity, and EV penetration and silicon content per vehicle continue to rise, lifting analog and embedded chip demand. In addition, Texas Instruments and Microchip saw renewed demand in factory automation, smart grid, and medical devices while Micron benefited from rising demand for HBM and DDR5 memory in AI workloads, ADI reported a 25% YoY revenue jump to $2.88B, driven by EV battery management systems and industrial automation, and Intel’s foundry push and AI accelerator roadmap are gaining traction. 
   • ​​​​​Price Change Catalyst(s):
     • MU rose 6.3% due to accelerating AI memory demand, bullish analyst sentiment, and positive signals from competitors SK Hynix and Samsung.
     • TXN fell 0.6% due to slower-than-expected demand recovery, valuation concerns, and mixed analyst sentiment following its Q3 earnings report.
     • NXPI fell 2.2% due to a muted market reaction to its Q3 earnings, cautious analyst sentiment, and valuation compression despite in-line results and upbeat guidance.;
     • ADI fell 2.4% due to valuation concerns, sector-wide policy uncertainty, and weak short-term technical momentum despite strong long-term fundamentals and analyst support.
     • IFNNY fell 3.2% due to cautious short-term forecasts, weak momentum scores, and mixed analyst sentiment despite long-term bullish outlooks.;
     • STM fell 3.8% due to weak Q3 earnings, cautious analyst sentiment, and macroeconomic headwinds impacting demand across key end markets; and
     • MCHP fell 9.8% due to weak Q4 guidance, inventory headwinds in key sectors, and a wave of analyst downgrades despite beating Q3 earnings.
3. The Pure-Play Semiconductor Supplier Model Portfolio: down 2.2% w/e November 7th; up 11.5% in October
   • Focus: provide essential equipment for manufacturing chips, such as lithography machines, etching, test, and packaging equipment, automation and inspection systems, and production materials such as chemicals, gases, wafers, and packaging.
   • Constituents: Applied Materials (AMAT); ASML Holding (ASML); KLAC Corp. (KLAC); and Lam Research (LRCX)
   • About Constituents: Lithography (ASML), etching (LRCX), metrology (KLAC), and deposition (AMAT) are needed to manufacture advanced nodes, and investors see these companies as essential enablers of the AI hardware wave, with long-term tailwinds from data centers, edge computing, and automotive chips.
   • ​​​​​Price Change Catalyst(s): 
     • LRCX fell 1.2% due to valuation concerns despite strong earnings and a recent analyst upgrade to “Strong Buy”;
     • KLAC fell 1.3% due to valuation concerns, mixed analyst sentiment, and sector rotation away from se equipment providers despite strong long-term fundamentals; 
     • AMAT fell 1.3% due to valuation concerns, mixed analyst sentiment, and export restriction risks despite strong year-to-date performance; and
     • ASML fell 4.0% due to investor concerns about its 2026 growth outlook, a Q3 revenue miss, and technical chart breakdowns despite strong profitability and dividend increases.
4. The Pure-Play Semiconductor Foundries Model Portfolio: down 3.9% w/e November 7th; up 8.6% in October 
   • Focus: The constituents in this Portfolio concentrate all their efforts in the manufacture of chips based on the designs provided by other semiconductor companies. GlobalFoundries and United Microelectronics focus on fabricating mature nodes (12nm–90nm and 28nm-90nm, respectively), Tower Semiconductor focuses on analog, RF, power, and mixed-signal nodes for the automotive, industrial, and medical markets and Taiwan Semiconductor specializes in fabricating leading-edge (3nm, 5nm, 7nm) nodes as well as mature nodes.
   • Constituents: GlobalFoundries (GFS); Taiwan Semiconductor (TSM); Tower Semiconductor (TSEM); and United Microelectronics (UMC)
   • ​​​​​About Constituents: Constituent stock prices are benefiting from overflow demand and specialty nodes for edge AI, automotive, and IoT, and are seen as indispensable players in the next wave of semiconductor innovation.
   • ​​​​​Price Change Catalyst(s):
     • TSEM fell 1.3% due to valuation compression after hitting a 52-week high, cautious analyst forecasts, and technical resistance despite strong year-to-date performance.
     • UMC fell 3.9% due to valuation compression, weak technical momentum, and cautious analyst sentiment despite stable fundamentals.
     • GFS fell 4.3% due to weak Q3 earnings expectations, cautious analyst sentiment, and valuation compression despite long-term bullish forecasts.
     • TSM fell 4.6% due to valuation compression near 52-week highs, profit-taking, and margin concerns tied to capital spending despite strong AI-driven growth.
5. The Pure-Play Fabless Semiconductor Companies Model Portfolio: down 5.5% w/e November 7th; up 14.0% in October
   • Focus: design and sell hardware devices and semiconductor chips themselves while outsourcing their fabrication (i.e., are fabless) to a specialized manufacturer. Each plays a distinct role in powering AI, data centers, edge devices, and automotive systems.
   • Constituents: Advanced Micro Devices (AMD); Broadcom (AVGO); Marvell (MRVL); Monolithic Power (MPWR); Nvidia (NVDA); and Qualcomm (QCOM).
   • ​​​​​About Constituents: All six companies are deeply embedded in the AI hardware stack - from GPUs and NPUs to networking ASICs and power management ICs - and the increasing AI infrastructure demand, their strong executions, and their strategic positioning across cloud, edge, and automotive markets show continuing strength.
   • ​​​​​Price Change Catalyst(s): 
     • Marvell fell 3.0% due to valuation concerns, margin pressure, and investor hesitation despite strong AI-driven revenue growth;
     • Monolithic Power fell 4.7%, despite beating Q3 earnings and revenue estimates, due to investor disappointment with guidance, modest margin compression, and broader market volatility.
     • Broadcom fell 5.5% due to valuation compression, technical resistance, and cautious sentiment despite strong analyst ratings and sector performance. 
     • Qualcomm fell 5.5% due to profit-taking after a strong Q4 earnings beat, cautious sentiment around AI positioning, and muted analyst upside despite bullish fundamentals.
     • Nvidia fell 7.1% due to investor concerns over inflated AI valuations, regulatory uncertainty, and profit-taking after a strong rally; and
     • AMD fell 8.8%, despite a strong Q3 earnings beat and raised guidance, due to valuation concerns, profit-taking, and cautious sentiment around AI chip monetization.
6. The Pure-Play EDA Software Chip Design Model Portfolio: down 9.3% w/e November 7th; down 6.2% in October
   • Focus: design complex semiconductor chips using sophisticated electronic design automation (EDA) software. Synopsys is a full-stack chip design, IP licensing, and software security, while Cadence Design concentrates on system-level integration, packaging, and simulation-heavy workflows.
     • Constituents: Cadence Design Systems (CDNS) and Synopsys (SNPS)
     • ​​​​​Price Change Catalyst(s):
       • CDNS fell 4.0% due to profit-taking after a Q3 earnings beat, valuation concerns near technical resistance, and muted analyst momentum despite strong fundamentals.
       • SNPS fell 13.3% due to underperformance relative to the broader market, technical weakness, and cautious sentiment ahead of its December earnings report.

Summary

The above 6 sub-portfolios in our model AI Semiconductor Stocks Portfolio fell an average of 3.9% w/e November 7th, but rose 8.1% in October. In comparison, the Nasdaq fell 3.1% w/e November 7th and rose only 4.8% in October.