AI stocks fell sharply on Thursday, October 8, after reports put OpenAI’s annualised revenue below previously circulated figures, while rising oil prices supported energy shares.
The Nasdaq dropped 1.3% and the S&P 500 lost 0.5%. The Dow edged up 0.1%, helped by gains in Chevron and Home Depot, according to Kiplinger.
OpenAI’s revenue gap unsettles investors
Reuters reported that OpenAI’s September revenue run rate approached $50 billion, compared with the roughly $70 billion previously indicated.
The discrepancy involved how sales through cloud partners were counted when comparing OpenAI with Anthropic. It should not automatically be interpreted as $20 billion in lost sales.
A revenue run rate extrapolates recent sales over a year. It is not the same as revenue already earned over twelve months.
Nevertheless, the report shook confidence in the spending supporting AI infrastructure. Nvidia fell 2.9%, AMD dropped 3.9% and Micron lost 4.8%.
Related: The AI Boom Is Increasingly Being Financed by Debt.
Oil supports energy shares
US crude futures rose 3.6% to $91.49 a barrel, keeping inflation concerns in focus. Chevron gained 3.2%, helping cushion the Dow against technology weakness.
Treasury yields eased by the close, but remained elevated, with the 10-year yield around 5.23%.
Chipotle jumps on takeover speculation
Chipotle gained 6.2% after reporting that Starbucks had explored a potential takeover. Starbucks shares slipped 0.4%.
The news concerned a possible transaction, with no agreed acquisition announced in the report.
Thursday’s modest S&P 500 decline concealed a sharper sell-off in AI stocks, showing how sensitive the sector remains to revenue expectations and the financing behind its expansion.
Disclosure: This article does not represent investment advice. The content is for informational and educational purposes only.
