Morning Edition · Fri 9 Oct 2026
Nasdaq Has Worst Day Since Mid-August as Chip Stocks Slide
The Nasdaq Composite fell 1.25% on Thursday, its steepest decline since mid-August, as chipmakers and AI-related stocks dropped after a report on OpenAI’s lower-than-expected revenue, according to CNN.
Chanan Zevin - Chief Editor and Head of Desks
Published
Nasdaq Posts Steepest Drop Since Mid-August
The Nasdaq Composite fell 1.25% on Thursday, marking its worst day since mid-August, according to CNN. The decline accelerated midday after the Financial Times published a report indicating that OpenAI’s annualized revenue is about $20 billion less than previously reported. The S&P 500 also declined, closing down 0.5% as losses in the technology sector weighed on the broader market, CNN reported.
Both major indexes had opened lower, but the pace of selling increased following the midday report on OpenAI’s revenue. The news added to investor concerns about the sustainability of recent gains in technology and artificial intelligence stocks, which have driven much of the market’s performance in recent weeks, according to CNN.
Chipmakers and AI Stocks Lead the Decline
Semiconductor and AI-related companies were among the hardest hit in Thursday’s selloff. Nvidia shares fell 2.9%, Intel dropped 5.3%, and Oracle declined 5.5%, according to CNN. The selling extended across chipmakers, cloud providers, and other firms involved in the artificial intelligence sector.
CNN reported that the drop was not limited to a single company or subsector, but reflected broader concerns about the outlook for AI demand and the profitability of companies investing heavily in the technology. The declines in these high-profile names contributed significantly to the broader market’s losses.
OpenAI Revenue Report Sparks Investor Anxiety
The Financial Times report, cited by CNN, stated that OpenAI’s annualized revenue is nearing $50 billion, significantly lower than the $70 billion figure previously reported by media outlets. A source familiar with the documents told CNN that the higher figure likely originated from efforts to compare OpenAI’s numbers with those of Anthropic, whose revenue calculations include gross receipts from cloud providers, while OpenAI’s are based on net revenue. OpenAI declined to comment to CNN.
The discrepancy in reported revenue figures has heightened investor uncertainty about the pace and scale of growth in the AI sector. According to CNN, the news comes at a time when the market is increasingly reliant on technology and AI stocks for gains, making any negative developments in the sector particularly impactful.
Why It Matters: AI Optimism Faces a Test
The sharp decline in technology and AI stocks highlights the market’s sensitivity to changes in expectations for artificial intelligence growth. Ross Mayfield, investment strategist at Baird, told CNN that the outlook for many tech stocks is based on the conviction that demand for AI will continue to expand. Any indication that revenue growth may be slower than anticipated can send ripples throughout the supply chain for AI, affecting software developers, hardware manufacturers, and cloud providers.
CNN noted that the stakes are higher now because recent market gains have been concentrated in tech and AI names, while other sectors have struggled under the pressure of rising bond yields. As Mayfield explained to CNN, the market has become much narrower and more dependent on AI-related stocks to sustain its momentum. Thursday’s selloff underscores the sector’s outsized influence on broader equity performance and the potential for volatility if growth expectations are called into question.
IPO Plans and Sector Outlook
OpenAI CEO Sam Altman announced in September that the company would postpone its initial public offering until at least next year, citing concerns about AI safety, according to CNN. Meanwhile, Anthropic is expected to launch its IPO later this fall, reportedly seeking a $2 trillion valuation. In August, Bloomberg and Reuters reported that Anthropic is on track to generate an annualized revenue of more than $65 billion, CNN reported.
The contrasting revenue figures and IPO plans for leading AI firms have added to the uncertainty facing investors. As the market continues to focus on the growth prospects of artificial intelligence, developments in the sector are likely to remain a key driver of market sentiment in the months ahead, according to CNN.