US EditionStocks Making the Biggest Moves Midday: Centene, Corning, Oracle, Vertiv, Coca-Cola, Spotify & More
OpenAI’s missed user and revenue targets fueled concern about AI spending, sending Oracle and Nvidia lower as chip and data-center stocks fell.
- Following The Wall Street Journal's report that OpenAI recently missed its own targets for new users and revenue, Oracle dropped more than 5% amid concerns the company cannot support its massive AI spending.
- Nvidia and Advanced Micro Devices slid more than 3% and 4%, respectively, as data center and AI infrastructure stocks tumbled broadly following reports OpenAI missed internal growth targets, raising fears about the trade's sustainability.
- Arm Holdings fell more than 8%, specialty glass maker Corning shed more than 8%, and digital infrastructure company Vertiv lost more than 6% while photonics plays Coherent and Lumentum dropped 6% and 7%, respectively.
- Wall Street analysts largely viewed the OpenAI development as isolated, according to Reuters, though the selloff raised broad concerns about sustainability of AI infrastructure spending across the sector.
- Oracle's $300 billion, five-year partnership to provide computing power to OpenAI now faces investor scrutiny as missed growth targets prompt questions about the scale of future AI infrastructure investments.
11 Articles
11 Articles
OpenAI growth stumble report rattles AI stocks
NEW YORK, United States — Shares in Oracle and CoreWeave slid Tuesday after a Wall Street Journal report said OpenAI had missed internal targets for users and revenue, stoking fresh fears about whether massive spending on artificial intelligence (AI) infrastructure can be sustained. Oracle dropped 4 percent to $166 on Wall Street. The tech giant has
Is Open AI the Lehman moment for the data center bubble? Because when the finance director of OpenAI says it is not sure whether you can pay the bills in the future, the alarm bells should ring! Highly indebted companies like Oracle or Coreweave are extremely dependent on OpenAI – but also giants like Nvidia live on the AI chip euphory with their higher, [...] The post OpenAI as Lehman moment, Hormus as the end of the Petro-Dollar! Market whispe…
OpenAI has rejected concerns about the growth of its sales, claiming that its consumer and business businesses are going "at full performance," despite a report that pointed out that AI's startup had failed its internal goals. ChatGPT's creator indicated that it continues to see an increase in demand from business customers and its emerging advertising business. "The internal environment is incredibly positive," the company said in a statement.T…
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