The Surprising Reality Tech Investors Need to Acknowledge, as Demonstrated by OpenAI

Key Points

• Artificial intelligence (AI) stock prices, including those of Nvidia, AMD, Broadcom, and Taiwan Semiconductor, dropped last month following reports that OpenAI missed key revenue and user growth goals.

• OpenAI currently has approximately 900 million monthly active users and could reach $280 billion in revenue by 2028, challenging Nvidia’s projected $216 billion revenue for fiscal 2026.

• Investors should remain focused on fundamentals when evaluating AI stocks, despite the market fluctuations influenced by OpenAI and Anthropic.

In September, leading artificial intelligence (AI) stocks saw a significant decline as OpenAI reportedly missed internal goals related to revenue and user growth. This market reaction highlights the potential influence of OpenAI and its competitor Anthropic in the tech industry as they approach their expected initial public offerings (IPOs).

OpenAI, boasting around 900 million monthly active users, is projected to reach $280 billion in revenue by 2028, drawing a parallel with Nvidia’s expected revenue of $216 billion in fiscal 2026. As their IPOs approach, fundamentals remain crucial for investors looking at AI stocks, reinforcing the importance of long-term strategies in a volatile market.