Doubts about OpenAI's revenue sent AI stocks tumbling. The Nasdaq 100 lost more than 1%
Reports that revenue at one of the leading U.S. AI labs fell short of expectations by $20 billion had a “domino effect” on the stock prices of semiconductor companies and other firms involved in AI
Photo: X / NYSE
The Nasdaq Composite Index and its narrower counterpart, the Nasdaq 100—which includes the 100 largest companies by market capitalization traded on the exchange—fell 1.2% and 1.4%, respectively, on October 8. Tech stocks came under pressure following reports that OpenAI’s annualized revenue was approximately $20 billion lower than the market had expected. The Financial Times reported this on Thursday.
“Investors’ concerns about OpenAI’s revenue triggered a ‘domino effect’ in the stocks of chipmakers and other AI-related companies,” Chris Zaccarelli, chief investment officer at Northlight Asset Management, told MarketWatch. As a result, the Philadelphia Semiconductor Index fell 3.4% on October 8. Oracle’s stock dropped more than 5%, while chipmakers Nvidia and Advanced Micro Devices fell nearly 3% and 4%, respectively.
The sell-off in tech stocks also weighed on the broader U.S. stock market: the S&P 500 fell nearly 0.5% on Thursday. The sell-off that began following OpenAI’s revenue report is a reminder that it’s important to diversify one’s portfolio and not limit it to tech stocks, Zakarelli noted.
What else are people saying in the market?
"Investors are becoming skeptical about how long large-scale investments in AI will last, given the significant rise in borrowing costs," noted Matt Maley of Miller Tabak (as quoted by Bloomberg).
This article is being updated
This article was AI-translated and verified by a human editor
