OpenAI Misses Revenue and User Targets, Sparking Selloff in AI Chip Stocks Including Nvidia and AMD

What's happening

OpenAI failed to reach its internal target of 1 billion weekly active users for ChatGPT by the end of 2025, currently maintaining 900 million weekly active users and 50 million subscribers, according to a Wall Street Journal report published April 28, 2026. The AI company also missed its yearly revenue target for ChatGPT and multiple monthly revenue targets earlier in 2026, despite generating $10 billion in annual recurring revenue, nearly double from $5.5 billion last year. OpenAI CFO Sarah Friar questioned the company's ability to pay for future computing contracts if revenue doesn't grow fast enough to fund massive data center spending commitments.

OpenAI disputed the report's characterizations, with a spokesperson stating the business is "firing on all cylinders" and denying any rift between CFO Sarah Friar and CEO Sam Altman. The company called aspects of the reporting "prime clickbait," though it did not specifically dispute the user growth and revenue figures cited in the Wall Street Journal article.

Why it matters for markets

The market reaction was swift and severe, with semiconductor stocks bearing the brunt of investor concerns about AI demand sustainability. Nvidia shares fell over 3% despite the company's $5.18 trillion market capitalization and 73% year-over-year Q4 revenue growth, while AMD dropped nearly 5% from its $526.97 billion market cap after posting 34% Q4 revenue growth. Oracle declined 4% from its $477.31 billion valuation, and the Philadelphia Semiconductor Index plunged 5%, erasing $440 billion in market value and ending a record 19-day rally.

The selloff reflects growing investor scrutiny of AI infrastructure investments totaling over $1 trillion in 2025, including $500 billion committed by Nvidia, $300 billion by Oracle, and $270 billion by AMD. OpenAI's user growth shortfall and revenue misses raise questions about whether demand for AI services can justify the massive capital expenditures on data centers and computing infrastructure that have driven semiconductor valuations to historic highs.

With OpenAI generating $10 billion in annual recurring revenue but struggling to meet growth targets, investors are reassessing the timeline for AI monetization and the sustainability of current infrastructure spending levels. The company's concerns about funding future computing contracts signal potential headwinds for chip manufacturers that have benefited from the AI infrastructure boom.

Sectors and assets to watch

Semiconductor companies face the most direct impact from concerns about AI demand sustainability. Nvidia, with its dominant position in AI chips and $5.18 trillion market capitalization, remains most exposed to fluctuations in data center and AI infrastructure spending. AMD, valued at $526.97 billion, competes directly in the AI accelerator market with its Instinct MI-series processors and faces similar demand risks.

Cloud infrastructure providers like Oracle, with its $477.31 billion market cap and Oracle Cloud Infrastructure offerings, also face scrutiny as enterprises may slow AI-related spending if growth projections prove overly optimistic. The broader technology sector, particularly companies with significant AI exposure, may experience continued volatility as investors recalibrate expectations for AI adoption timelines and revenue generation.

What to watch next

Monitor OpenAI's quarterly user growth and revenue figures to assess whether the company can accelerate growth and meet its revised targets. Track semiconductor earnings guidance and data center capital expenditure announcements from major cloud providers, as any pullback in AI infrastructure spending could significantly impact chip demand. Watch for broader market sentiment shifts around AI valuations and whether other AI companies report similar growth challenges that could extend the current selloff.