Nvidia shares fell by 2.94% on Thursday after OpenAI informed investors of an annual revenue of approximately $50 billion, which is $18 billion lower than the $68 billion estimate widely reported last month. Alex Kantrowitz, founder of Big Technology, noted on CNBC that the difference is primarily an accounting issue. On the same day, Nvidia shares closed at $230.48, which is 5% below the record high of $243.37 reached on Tuesday. Shares of Advanced Micro Devices (AMD) also fell by 3.9% on the same day, while Oracle lost more than 5% due to market fluctuations related to OpenAI. According to Yahoo Finance, Nvidia shares have risen by 24% this year, and the company's market value is approximately $5.6 trillion. Despite the share drop, key indicators remain strong: Nvidia reported revenue of $96.22 billion for the last quarter, exceeding the expected $92.16 billion.
However, Kantrowitz notes that uncertainty prevails regarding the AI market, as some companies have redirected part of their spending to standard models instead of newer ones. He pointed to weak market breadth: the top seven stocks are outperforming the remaining 493 in the S&P 500 index. Nonetheless, Wedbush analyst Dan Ives named Nvidia as one of his top five technology stocks for 2027, arguing that investors underestimate the $4 trillion wave of AI spending.
Kantrowitz expects the initial public offering (IPO) of Anthropic to occur in the coming weeks, and OpenAI's next year. The market is waiting for any issues to arise, and any deviation could repeat the drop that occurred on Thursday. According to the leaked S-1 of Anthropic, a document for listing in the US, losses exceed revenue volumes. The upcoming IPOs are expected to show whether AI revenue can support the expenses behind Nvidia's valuation.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.
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