AMD Shares Drop After OpenAI Growth Report Sparks Chip Sell-Off
AMD shares ended sharply lower following reports that OpenAI missed its internal weekly user and revenue targets, dragging the PHLX Semiconductor Index down after an 18-day rally. Traders sold AI-linked chip stocks including Nvidia and Broadcom, while investors await Fed commentary on interest rates and inflation.
1. AI Growth Concerns Hit AMD
AMD shares ended sharply lower after investors reacted to reports that OpenAI failed to meet its weekly user and revenue goals, triggering uncertainty over future data-center spending.
2. Broad Chip Sector Sell-Off
Peers Nvidia and Broadcom slid up to 6%, while the PHLX Semiconductor Index snapped its 18-day winning streak, as traders reevaluated AI infrastructure demand.
3. Fed Meeting Outlook
Markets await the Federal Reserve's policy statement and chair commentary for clues on interest rates and inflation, factors that could influence technology and chip sector momentum.