Not cashing in your chips, Chipmakers are lagging in the market
Landon Capital News
Chipmakers and companies financing artificial intelligence infrastructure were among the biggest laggards. The Philadelphia Semiconductor Index fell 3.4%, while Nvidia (NASDAQ: NVDA) dropped 2.9%, Advanced Micro Devices (NASDAQ: AMD) slid 3.9%, and Micron Technology (NASDAQ:MU) lost 4.8%.
Weighing on sentiment was a Financial Times report which said that OpenAI had told investors its annualized revenue was approaching $50 billion at the end of September, below the $70 billion figure previously signaled by media outlets.
OpenAI has also been discussing a fundraising round of at least $30 billion at a valuation of around $1.4 trillion before the new capital, the report said.
In a note, analysts at Vital Knowledge argued that the debate around OpenAI’s revenue is a “function of math” and how top-line figures are calculated, instead of an indication of slowing artificial intelligence demand. However, the analysts flagged that the prior session’s fall in tech stocks could be a sign of “extreme positioning imbalances that have further to unwind in our view, which is why the whole AI-linked tech stock complex is unlikely to simply stage a sharp, V-shaped rebound.”
Elsewhere in tech, shares in Apple slumped after Nikkei reported that the company has dialed back on iPhone 18 orders because of tepid demand.
About Landon Capital
Landon Capital Inc. is a media company that wholly owns subsidiaries Landon Capital Management LLC and Landon Capital News. Landon Capital News distributes economic, and political news in over 176 countries. Landon Capital News provides an in depth and simplistic look at financial, economic, and political news, as it is happening. We also provide our viewers with in-depth analysis on various companies and political news that directly correlate to economics. We bridge the gap of information between the investor and the markets, sectors and industries that they invest. For more information, please contact us at info@landoncapital.net or 404-995-6671 or visit https://landoncapital.net.
Safe Harbor Statement
This release does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. Landon Capital received no direct compensation related to this release. This release contains certain forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements in this release are based on information available to us as of the date hereof. Actual results may differ materially from those stated or implied in.
