Nvidia shares dropped 2.94% on Thursday following reports that OpenAI's annualized revenue is approximately $50 billion, which is $18 billion lower than previously estimated. This decline follows a record high of $243.37 reached on Tuesday, with the stock closing at $230.48.
The market reaction extended to other industry players, as AMD shares fell 3.9% and Oracle stock declined by more than 5%. Despite the recent dip, Nvidia has seen a 24% increase this year, reaching a market valuation of nearly $5.6 trillion. In the last quarter, the company reported revenue of $96.22 billion, exceeding the projected $92.16 billion.
Market analysts highlight concerns regarding the concentration of gains, noting that the top seven stocks in the S&P 500 are currently outperforming the remaining 493. Technology stocks now account for over 40% of the total market. Observers suggest that the broader sector remains heavily dependent on the performance of companies like OpenAI and Anthropic.
Looking ahead, analysts anticipate an initial public offering for Anthropic within weeks, while OpenAI is expected to go public next year. Leaked filings for Anthropic indicate that losses are currently exceeding revenue growth. Despite these risks, some experts like Dan Ives maintain a positive outlook, projecting a $4 trillion wave of investment in artificial intelligence by 2027.
