Asian stocks slip after OpenAI report sinks U.S. chipmakers

Chipmakers led a selloff in U.S. technology stocks on Thursday, October 8, after reports on OpenAI's revenue brought back doubts about whether the AI spending boom can pay for itself. Oil prices rose on fresh trouble in the Middle East. Asian shares slipped on Friday and were on track for a second straight weekly drop.reuters+1

The Nasdaq 100 fell 1.4% and a gauge of chip stocks sank 3.4%, according to Bloomberg. The S&P 500 lost 0.47% to close at 7,765.36. The Nasdaq Composite slid 1.25%, while the Dow Jones Industrial Average edged up 0.1%.swissinfo+1

OpenAI figures hit AI trade

People familiar with the matter said OpenAI is on track for roughly $50 billion in annualized revenue. Some outlets had reported last month that the figure was close to $70 billion. The Financial Times first reported the new estimate. Nvidia ↘ 2.94%, Broadcom ↘ 4.35%, Micron Technology ↘ 4.79% and Oracle ↘ 5.48% all fell.ndtvprofit+1

"Investors are becoming a bit skeptical about how long this huge AI spending can last with borrowing costs rising in a significant way," said Matt Maley of Miller Tabak. Pepperstone's Chris Weston said investors are becoming "more selective" about "what price they are prepared to pay for future growth".swissinfo+1

Investors are also watching for a large wave of fundraising, as SpaceX, Broadcom and Oracle are all expected to raise billions to buy AI chips. In Australia, Nvidia-backed data center operator Firmus shelved a planned $5 billion IPO because of market volatility.reuters

Oil, yields and the Fed

U.S. crude rose 3.6% to settle at $91.49 a barrel. Iran struck a vessel near Qatar, which threatens tanker traffic through the Strait of Hormuz, and Hurricane Isaias put production in the U.S. Gulf at risk. Oil came off its session highs after President Donald Trump said the U.S. would not attack Iran before the midterm elections. Brent crude was near $103.70 in Asian trading on Friday.marketwatch+2

The 10-year Treasury yield fell to about 5.23% after strong demand at an auction of 30-year bonds. The yield is still close to the 24-year high it reached on Wednesday. Fed Governor Christopher Waller said more rate hikes will likely be needed, though they don't have to come at back-to-back meetings.swissinfo+2

Asia slips

MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.16% on Friday and was headed for a weekly loss of more than 1%. Japan's Nikkei 225 dropped more than 1%, and markets in South Korea and Taiwan were closed for holidays. India's Sensex went the other way, rising more than 800 points as IT stocks gained after Tata Consultancy Services reported quarterly results.ndtvprofit+1

"With long-term yields back around multi-decade highs, investors no longer have the luxury of valuing AI growth in a low-cost-of-capital world," said Charu Chanana of Saxo.reuters