Wall Street mixed as chip stocks fall on OpenAI revenue report
US stocks ended mixed on Thursday, with chip stocks falling after a report said OpenAI's annualised revenue was US$20 billion lower than previously suggested. The Dow Jones rose 0.1 per cent, while the Nasdaq fell 1.3 per cent.
Wall Street's three main indexes ended mixed on Thursday, with semiconductor stocks declining. The Dow Jones Industrial Average, which at one point fell 240 points, closed steady at 51,231 points, up 51 points or 0.1 per cent. The Nasdaq Composite fell 345 points, or nearly 1.3 per cent, to 27,193 points. The S&P 500 lost 36 points, or nearly 0.5 per cent, to 7,765 points.
According to reports, OpenAI's annualised revenue as of the end of September was nearly US$50 billion, which was US$20 billion lower than the company had previously hinted. The news dragged down chip stocks. The Philadelphia Semiconductor Index fell more than 3 per cent. Nvidia dropped nearly 3 per cent, while Micron Technology and Intel fell nearly 5 per cent or more.
Separate reports said Broadcom is arranging US$50 billion in financing for OpenAI, while Oracle is also seeking an undisclosed amount of funding. This raised market concerns that large-scale debt issuance by technology companies could intensify competition for capital. Broadcom and Oracle fell more than 4 per cent to more than 5 per cent.
Most big technology stocks moved lower. Amazon fell more than 2 per cent, Microsoft dropped more than 1 per cent, but Apple rose more than 1 per cent.