NEW YORK, April 28, 2026, 15:26 EDT
- Chip stocks lost ground Tuesday, following news that OpenAI failed to hit its own user and revenue goals.
- Nvidia, AMD, and Broadcom all came under pressure as the selloff swept through, with the losses landing just before a closely watched earnings stretch for Big Tech.
- OpenAI resisted, as investors zeroed in on the question of continued growth in AI data-center spending.
Chip names dropped Tuesday, with Nvidia, AMD, and Broadcom all under pressure. Investors pulled back after the Wall Street Journal threw new uncertainty on OpenAI’s growth prospects and its future financing for computing power.
Around 3:15 p.m. EDT, Nvidia shares slipped roughly 0.9%. AMD was off 2.5%, while Broadcom tumbled 4.1%. The VanEck Semiconductor ETF, tracking major chip names, shed 2.4%.
Timing played a role. Wall Street has leaned hard into semiconductors as an AI bet, and the Philadelphia SE Semiconductor Index was up over 40% for the year until Tuesday’s drop, Reuters noted. The Nasdaq and S&P 500 slipped from their record closes with the chip sector losing steam. Reuters
The Wall Street Journal said OpenAI missed its latest targets for both user growth and revenue. According to Reuters, which referenced that story, OpenAI CFO Sarah Friar warned other executives the company could have trouble footing bills for upcoming computing deals if revenue doesn’t pick up speed. Reuters
The chip sector felt the sting, with AI’s expansion hinging on massive orders for processors, networking hardware, and servers. Nvidia, AMD, and Broadcom have each been linked to OpenAI via equipment deals or investments, according to Reuters. Reuters
OpenAI pushed back on suggestions of any rift in its leadership over spending. CEO Sam Altman and Friar told Reuters in an emailed statement they were “totally aligned on buying as much compute as we can”—referring to the hefty computing resources required for training and running AI models. Reuters
The selloff kept rolling. Oracle dropped after the report, pressured by worries over OpenAI cloud demand. CoreWeave and Arm lost ground too. “Weakness in an AI-linked company can create a ‘ripple effect across the board,’” said Todd Schoenberger, chief investment officer at CrossCheck Management, in comments to Reuters. Reuters
With Big Tech earnings looming, investors want a sharper picture of demand. Alphabet, Microsoft, Meta, and Amazon all report Wednesday, and together, they’re set to pour roughly $600 billion into AI initiatives this year, according to Reuters. That spending—capital expenditure, or capex—covers longer-term investments like data centers, chips, and assorted hardware. Reuters
“What investors are looking for – us included – is what’s the return on all the capital expenditure?” Joe Maginot, large-cap portfolio manager at Madison Investments, told Reuters. The economics of businesses that used to generate hefty cash piles are shifting, he said, as operating cash flow gets swallowed up by AI-related spending. Reuters
But there’s another side. Oliver Pursche, senior vice president at Wealthspire Advisors, cautioned against reading too much into a single report. OpenAI fell short of targets, he said, but “there’s lots of other players in the field.” Reuters
Allan Small, senior investment adviser at Allan Small Financial Group with iA Private Wealth, told Reuters he doesn’t see OpenAI’s reported growth worries as a sign the broader AI sector is losing steam. “There’s just more competition,” he said. Reuters
The risk here? The selloff may be hitting the wrong notes—either it’s just too early, or it’s focused too tightly. Should Big Tech stick with its aggressive AI investments, Tuesday’s dip might end up being only a blip, clearing out some of the excess. But if Microsoft, Alphabet, Meta, or Amazon hint at pulling back on spending, then the fallout could spill past the OpenAI names, dragging semiconductor suppliers into the mix.
Right now, chip stocks aren’t trading on orders or capacity. The spotlight’s on payback. Demand for AI chips isn’t the only issue—investors want to know if these buyers can actually monetize those big hardware bets, and how quickly that revenue shows up.
