Nvidia Stock Faces Critical Warning Sign. Is the AI Trade Breaking?

Nvidia stock fell 2.94% Thursday after OpenAI told investors its annualized revenue is roughly $50 billion, about $18 billion below the $68 billion widely reported last month.

Alex Kantrowitz, founder of Big Technology, called the gap largely an accounting issue on CNBC’s Closing Bell. Nvidia still closed at $230.48, about 5% below its Tuesday record high of $243.37.

Why Is Nvidia Stock Taking the Hit for OpenAI’s Number?

Nvidia and Advanced Micro Devices (AMD) have each signed multibillion-dollar partnerships with OpenAI. Therefore, both chipmakers carry direct exposure to its growth.

AMD slid 3.9% the same day. Oracle fell more than 5% in an OpenAI-linked stock crash.

Kantrowitz noted that both stocks have mostly performed well this year. Yahoo Finance data shows Nvidia up about 24%, with a market value near $5.6 trillion.

Still, the fundamentals remain strong. Nvidia posted $96.22 billion in revenue last quarter, beating the $92.16 billion estimate, Google Finance data shows.

However, Kantrowitz sees skittishness around the AI trade. He said some companies have shifted part of their spending to standard models rather than frontier ones.

Can Nvidia Hold If OpenAI or Anthropic Stumbles?

Kantrowitz said market breadth is weak, with the top seven stocks outpacing the other 493 in the S&P 500.

Meanwhile, a Closing Bell host put the tech trade at more than 40% of the market. Kantrowitz agreed the broader market hinges on OpenAI and Anthropic.

In contrast, Wedbush analyst Dan Ives named Nvidia among his top five tech picks for 2027. He argued investors underestimate a $4 trillion AI spending wave.

Kantrowitz expects Anthropic’s initial public offering (IPO) within weeks, most likely, and OpenAI’s next year. The market is waiting for something to go wrong, he said, and any wrinkle could repeat Thursday’s selloff or worse.

Kantrowitz said Anthropic’s leaked S-1, a US listing filing, showed losses outpacing revenue gains. With two IPOs expected, filings could show whether AI revenue can carry the spending behind Nvidia’s valuation.