Advanced Micro Devices Shares Slide After OpenAI Misses Targets, Nasdaq Drops 0.9%
Advanced Micro Devices shares fell in line with Nvidia and Broadcom after OpenAI missed its weekly user and revenue forecasts, fueling a 0.9% Nasdaq slide on April 28. The pullback reflects renewed investor concern over AI demand as the Federal Reserve prepares to hold rates at its meeting.
1. AMD Shares Slide on AI Concerns
Advanced Micro Devices shares ended sharply lower on April 28, moving in tandem with Nvidia and Broadcom as chip stocks sold off. The sector-wide drop underscored growing investor caution over the sustainability of AI-driven growth projections.
2. OpenAI Misses Weekly Targets
A report that OpenAI failed to meet its internal user and revenue goals sparked the selloff, raising questions about the company’s ability to support its aggressive data center spending. Investors viewed the shortfall as a potential sign of slowing enterprise adoption of generative AI.
3. Federal Reserve’s Rate Outlook
The pullback coincided with the Federal Reserve’s meeting, where policymakers are expected to maintain current benchmark rates. Market participants are closely watching for any commentary on inflation or geopolitical risks that could influence technology sector valuations.