Nvidia and Micron shares bounce as investors get clarity on a key OpenAI matter

Nvidia and Micron shares bounce as investors get clarity on a key OpenAI matter Nvidia and Micron shares bounce as investors get clarity on a key OpenAI matter A new report paints OpenAI’s financial picture in a more optimistic light OpenAI, led by CEO Sam Altman, is reportedly on track for annualized revenue of $70 billion on a net basis by the end of the year, according to Bloomberg. Investors may have reacted prematurely in selling chip stocks over fears about OpenAI’s financial position. Shares of chip makers tied to the artificial-intelligence buildout are set to rise Friday morning, after they declined the previous day.

A new report discussing OpenAI’s revenue progress seems to be clarifying issues that had been spooking investors. Bloomberg reported Friday that OpenAI is eyeing annualized net revenue of $70 billion by the end of the year, mostly on strength in its enterprise business. At the end of September, the company reportedly saw annualized revenue of $50 billion.

Video 91/1 Skip Ad Continue watching after the adVisit Advertiser websiteGO TO PAGE What to look for in the next wave of IPOs, after SpaceX made historySee All Videos What to look for in the next wave of IPOs, after SpaceX made history Play video: What to look for in the next wave of IPOs, after SpaceX made history The report followed one from the Financial Times on Thursday which said the ChatGPT maker told investors it was approaching $50 billion in annualized revenue at the end of last month. That figure was $20 billion less than the roughly $70 billion figure OpenAI had previously projected, according to the Financial Times. Annualized revenue is found by taking revenue from a month or another short period of time and using it to determine what a company could make in a full year.

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I can unsubscribe at any time. Chip stocks fell on Thursday, as OpenAI serves as an important indicator of ongoing demand for AI and therefore of the spending on infrastructure that’s required to support the development and deployment of the technology. **See more:**Micron, Nvidia and AI chip stocks fall as report on OpenAI’s revenue causes ‘undue concern’ Now in Friday’s premarket trading, shares of Advanced Micro Devices are up 1.7% and 1.4%, respectively. Both companies have partnerships with OpenAI to supply significant amounts of graphics processing units and other infrastructure for training its AI models.

Broadcom , which is designing a custom chip with OpenAI, is seeing its stock rise 1.9%. were up 1.8% in early trading. The companies have been major beneficiaries of AI-driven demand for memory and storage components needed to support agentic AI and inference, or the process by which an AI model makes predictions based on what it learned in training. OpenAI’s investors had reportedly tried to compare its annualized revenue with that of rival Anthropic, but because the frontier labs calculate this number differently, that led to inconsistencies, according to the Financial Times.