Nvidia and AMD shares fell for a fourth straight session on Monday, even after both companies unveiled open designs for future AI data centers. An analyst said the announcements are still far from turning into orders, while worries about OpenAI and Treasury yields weighed on chip stocks.
Shares of Nvidia and Advanced Micro Devices fell for the fourth consecutive day Monday as investors looked past the companies' latest open-source AI announcements. AMD dropped 2.3% after it introduced a blueprint for its upcoming Helion chip rack at the Open Compute Project's annual global summit.
Open designs, no orders yet
Nvidia declined 1.3% after it shared open-standard designs, including for parts of its upcoming Vera Rubin AI platform, with partners such as Meta Platforms, Cisco Systems and Alphabet's Google.
Bill Birmingham, head of research at Rex Financial, said the announcements bode well for the industry but mostly focus on setting standards for now. He told MarketWatch: "There is still a way to go before these announcements turn into purchase orders."
OpenAI concerns weigh on chipmakers
Birmingham said ongoing concerns about the sustainability of the AI trade and the financial position of OpenAI dragged down Nvidia, AMD and other chip stocks. The Financial Times reported last week that OpenAI told investors it was approaching $50 billion in annualized revenue at the end of September, $20 billion less than previously projected.
However, the FT and Bloomberg both reported that the gap was tied to differences between how OpenAI and rival Anthropic determine annualized revenue. Still, AMD and Nvidia both have partnerships to supply OpenAI with millions of GPUs and other AI infrastructure, so Birmingham said any shortcomings there would affect near-term estimates.
Memory and optical stocks slide
Micron Technology fell 3.9% after the South China Morning Post reported that Chinese rival ChangXin Memory Technologies said it had made progress on a technique to improve memory density on a single chip. Optical stocks were hit especially hard, with analysts attributing the moves in part to cautious commentary about AI spending.
Birmingham also said long-term U.S. Treasury yields are holding near historical highs, so investors continue to reprice growth-heavy equity valuations in general.
Source: MarketWatch
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