Tech Shares Plunge on Thursday
Tech shares plunged on Thursday after the Financial Times reported that OpenAI's revenue was sharply below figures published by outlets previously. The S&P 500 fell 0.8% and the Nasdaq 100 slipped 1.6%, while the Dow held slightly below the flatline. The report cited documents indicating annualized revenue of $50 billion rather than the $70 billion previously estimated. This reignited concerns over profitability for LLM developers and the sustainability of their soaring investments in AI infrastructure, which have carried both the stock market and US GDP growth this year. Nvidia fell 3%, while Broadcom, SpaceX, AMD, Intel, and Arm dropped between 4% and 8%. Meanwhile, energy prices eased after President Trump signaled the US would not strike Iran before the midterm elections, cooling the rally in long-dated yields. Consumer defensive shares and payment processors rebounded in relief, with Walmart, Visa, and Mastercard adding more than 2%.
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Tech shares plunged on Thursday after the Financial Times reported that OpenAI's revenue was sharply below figures published by outlets previously. 6%, while the Dow held slightly below the flatline. The report cited documents indicating annualized revenue of $50 billion rather than the $70 billion previously estimated. This reignited concerns over profitability for LLM developers and the sustainability of their soaring investments in AI infrastructure, which have carried both the stock market and US GDP growth this year.
Nvidia fell 3%, while Broadcom, SpaceX, AMD, Intel, and Arm dropped between 4% and 8%. Meanwhile, energy prices eased after President Trump signaled the US would not strike Iran before the midterm elections, cooling the rally in long-dated yields. Consumer defensive shares and payment processors rebounded in relief, with Walmart, Visa, and Mastercard adding more than 2%.