The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

Shares of Tower Semiconductor (NASDAQ: TSEM) fell 7.4% on Friday.

Tower is an Israeli semiconductor manufacturing company that produces specialty semiconductor nodes. Those aren't the most leading-edge, cutting-edge chips produced by the likes of Taiwan Semiconductor Manufacturing (NYSE: TSM). However, Tower has become a massive AI winner, with the stock up a whopping 465% over the past year, due to its specialized silicon photonics technology. AI data centers are switching from copper to silicon photonics networking right now, so Tower's growth and future expectations have exploded.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

However, investors are in a profit-taking mood today after a rumor emerged yesterday that OpenAI may delay its IPO.

Yesterday, The New York Times reported that artificial intelligence pioneer OpenAI may delay its initial public offering, originally planned for this year, into 2027. According to the article, OpenAI's hesitation stems from the public debut of Space Exploration Technologies (NASDAQ: SPCX) and its subsequent price action.

However, that seems like an excuse. While SpaceX spiked on its first day of trading and has subsequently retreated, its stock price is still solidly above its IPO price of $135 per share. That is by no means abnormal for a new issuance or a sign of a "failed" IPO.

What's concerning is that OpenAI's financials, user growth, and other key performance indicators may not be as strong as Sam Altman and OpenAI's management would like. This year, rival Anthropic has seemingly become the leader in many key categories for large language models and has reported explosive growth. Earlier this month, the Wall Street Journal reported that OpenAI was contemplating "dramatic" price cuts to boost its user base amid its war with Anthropic.

The upshot is that, if OpenAI is not growing as quickly as some would like, that could curtail its infrastructure investment going forward. Given how far AI-related semiconductor stocks have run this year, it's no surprise that even the extrapolation of a rumor could lead to a sell-off.

While OpenAI's story is notable, it doesn't necessarily mean long-term oriented. Foolish investors shouldn't panic. We've seen "scares" before in the AI build-out, from the debut of the low-cost Chinese model DeepSeek to large debt raises on behalf of hyperscalers, and more.

Even if OpenAI is struggling today, it doesn't mean it will quit competing. After all, there was a time when it was ahead of Anthropic. So, things could flip again. And if the broader AI build-out is really as large as many commentators think, there will still be investment in infrastructure from other players.

Investors should, however, stay on top of the news and note shifts in the industry, such as the recent shifts from training to inference to agentic, and should probably have exposure to a basket of likely beneficiaries. As of now, Tower still seems like one of the winners.

Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this.

On rare occasions, our expert team of analysts issues a "Double Down" stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves:

Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $508,315!*

Apple: if you invested $1,000 when we doubled down in 2008, you'd have $52,442!*

Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $382,359!*

Right now, we're issuing "Double Down" alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of June 22, 2026

Billy Duberstein and/or his clients have positions in Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

Why Tower Semiconductor Took a Dive Today was originally published by The Motley Fool