Chipmakers Slide as OpenAI Revenue Reports Renew AI Spending Concerns — US Market Wrap
US stocks declined as a selloff in semiconductor shares intensified following reports about OpenAI's revenue outlook, reviving concerns over whether the artificial-intelligence investment boom can sustain its current pace. Technology stocks led losses in the S&P 500, while the Nasdaq 100 fell 1.4% and a key semiconductor index sank 3.4%. Oil prices climbed but finished below session highs after President Donald Trump indicated the US would not launch attacks against Iran before the midterm elections. Treasuries advanced following a solid $30 billion auction of long-term government bonds. OpenAI is reportedly on track to generate approximately $50 billion in annualized revenue based on its current performance, below earlier reports suggesting the ChatGPT developer was approaching a $70 billion annualized run rate. The revised revenue expectations have added to investor concerns about the sustainability of AI spending, particularly as rising borrowing costs place additional pressure on companies undertaking substantial investments in infrastructure and computing capacity.
US stocks declined as a selloff in semiconductor shares intensified following reports about OpenAI's revenue outlook, reviving concerns over whether the artificial-intelligence investment boom can sustain its current pace. 4%. Oil prices climbed but finished below session highs after President Donald Trump indicated the US would not launch attacks against Iran before the midterm elections. Treasuries advanced following a solid $30 billion auction of long-term government bonds.
OpenAI is reportedly on track to generate approximately $50 billion in annualized revenue based on its current performance, below earlier reports suggesting the ChatGPT developer was approaching a $70 billion annualized run rate. The revised revenue expectations have added to investor concerns about the sustainability of AI spending, particularly as rising borrowing costs place additional pressure on companies undertaking substantial investments in infrastructure and computing capacity.