Market Analysis: The tech stock sell-off reflects OpenAI's tremendous influence

Golden Finance reported that on April 29, even the possibility that OpenAI’s growth rate might fall short of expectations had already become an expensive problem. The Wall Street Journal previously reported that the ChatGPT parent company has recently failed to meet its internal targets for additional users and revenue. This has raised concerns for OpenAI CFO Friel about the company’s ability to pay for future computing contracts. OpenAI denied that it is cutting back on contracts, and also denied that there is friction between Friel and CEO Altman as the company seeks to conduct an IPO later this year. This did not stop investors from selling the stocks most affected by OpenAI’s future expansion plans. Nvidia(NVDA.O) fell by more than 3% at one point, while Broadcom(AVGO.O) dropped by more than 5%. This led to a combined market value loss of nearly $280 billion across the two companies. Other major chip stocks, including AMD(AMD.O), Intel(INTC.O), and Arm(ARM.O), also declined, dragging the Philadelphia Semiconductor Index down by as much as 4.6%. Microsoft has not been affected so far. In a report, UBS analyst Karl Keirstead wrote, “OpenAI hopes to use more cloud services, while Microsoft wants to introduce more models, so pushing for diversified development seems to be the trend.”