Is the AI CapEx Trade Cracking? 5 Stocks Most Exposed If OpenAI’s Slowdown Is Real
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.
15 Articles
15 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 the AI CapEx Trade Cracking? 5 Stocks Most Exposed If OpenAI’s Slowdown Is Real
The post Is the AI CapEx Trade Cracking? 5 Stocks Most Exposed If OpenAI’s Slowdown Is Real appeared first on 24/7 Wall St.. Quick Read These five U.S.-listed stocks are most directly tethered to AI infrastructure spend. This is a map of where the risk sits if the CapEx narrative wobbles. The common thread is hyperscaler CapEx concentration. Four of the five names trade at or near multi-year highs, with all citing hyperscaler AI spending as t…
AI Rally Wobbles as OpenAI’s Missed Growth Expectation Exposes Fault lines in $700bn Spending Surge
A broad selloff across artificial intelligence-linked stocks on Tuesday has exposed a growing unease in markets that the pace of investment underpinning the AI boom may be running ahead of near-term demand. The pullback followed a WSJ report that OpenAI has missed internal expectations for user growth and revenue, raising concerns about its ability to […] The post AI Rally Wobbles as OpenAI’s Missed Growth Expectation Exposes Fault lines in $700…
The technological market has reacted nervously after it became known that OpenAI would not have complied with its own internal growth forecasts.The impact has not been limited to the company, but has dragged much of the ecosystem linked to artificial intelligence, especially to companies linked to infrastructure, data centers and chip manufacturing.A report that shakes the sector Doubts about OpenAI's evolution have arisen from information that …
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