OpenAI Miss Fuels AI Selloff Expansion, Risks Microsoft Ahead of Earnings

AI-linked stocks deepened losses after reports confirmed OpenAI missed key sales and user targets, prompting a reassessment of heavy AI investments. Earlier, Nvidia dropped over 3% and Broadcom more than 5%, erasing nearly $280 billion from their combined market value while the PHLX Semiconductor Index fell 4.6%. The selloff broadened with Oracle down 4.1%, CoreWeave 5.8%, AMD 3.4%, Nvidia another 1.6%, Nasdaq 100 off 1%, and semis down 3.6%, raising flags for reduced cloud spending at Microsoft Corp, Amazon, and Alphabet.