Micron, Nvidia face renewed pressure as AI spending fears swell

The AI trade had another rough day. On October 15, Micron shares fell 4% to 4.5%, while Nvidia slipped between 1.3% and 1.8%. Those moves capped a brutal stretch for chipmakers. Over the course of the week, 20 major AI and semiconductor stocks lost over $1 trillion in combined market value. What set off the latest sell-off The pressure built sharply between October 13 and 15. The trigger was a Financial Times report on OpenAI’s finances. According to that report, OpenAI’s annualized revenue run rate stood at approximately $50 billion as of September 30. The market had been expecting something in the range of $68 to $70 billion. The damage spread across the sector. AMD declined approximately 2% to 3.5% in premarket trading on October 15. The Philadelphia Semiconductor Index, the benchmark for chip stocks, has been under pressure for multiple consecutive sessions. Rates, debt and a competitor from China Rising US inflation has fueled expectations of higher interest rates. CoreWeave, the AI cloud provider, has seen its bond yields soar as investors demand more compensation for holding its debt. On October 12, Chinese memory maker ChangXin Memory Technologies, known as CXMT, announced ...