Joe Mazzola, head of trading and derivatives strategist at Charles Schwab, who analyzes market sentiment, said in a note on April 28 that the OpenAI news is already weighing on AI-linked stocks.
He pointed to declines in Arm Holdings, CoreWeave, Oracle, Advanced Micro Devices, and Nvidia on Tuesday, and noted that “CoreWeave and Oracle both have large deals with OpenAI.”
That’s raising concerns about whether OpenAI can meet its previous multi-billion-dollar spending commitments, he said.
The uncertainty, he suggested, is starting to ripple into fresh concerns about other AI companies.
“One question is whether the issues are isolated to OpenAI or extend to competing AI developers like Anthropic — the maker of Claude — and Alphabet’s Google Gemini,” he wrote. “Demand is growing faster than the infrastructure needed to support it, frustrating some users.”
Read the full article here
