Nvidia Stock Drops While OpenAI Projects Billions in Revenue

The artificial intelligence sector is currently experiencing a mix of significant investment, ambitious growth projections, and market volatility, as companies navigate the high costs and potential returns of AI integration. British real estate firm Rightmove, for instance, saw its stock drop by as much as 28% initially, settling around 12% lower, after announcing plans to invest £60 million in AI over the next three years. This investment is expected to slow its operating profit growth to 3% to 5% in 2026, down from 9% this year. However, CEO Johan Svanstrom anticipates a rebound after 2028, projecting over 12% annual profit growth by 2030, emphasizing AI's central role in their business. Meanwhile, major AI players are facing market scrutiny. Nvidia, a leading AI stock, experienced a 3.7% drop, losing over $450 billion in market value since Monday, contributing to a 1.1% decline in the S&P 500. Other significant tech companies, including Advanced Micro Devices (AMD) and Super Micro, are also seeing their shares fluctuate amid concerns about high AI stock valuations. This sentiment extended to Asia-Pacific markets, with Japan's Nikkei 225 falling 2.11% and South Korea's Kospi declining 1.47%. Despite these concerns, demand for AI infrastructure remains robust. Dell Technologies reports booming business for its AI-optimized servers, with demand outstripping supply for two years. The company's AI server backlog has grown to $11.7 billion, fueled by deals like IREN's $9.7 billion agreement with Microsoft, which includes $5.8 billion worth of Dell equipment. OpenAI, a key player in AI development, projects over $20 billion in yearly revenue this year and aims for hundreds of billions by 2030. CEO Sam Altman also revealed the company has signed over $1.4 trillion in deals for new infrastructure, though OpenAI, valued at $500 billion, is not yet profitable. Analysts from BCA Research are predicting a future sell-off in AI stocks, suggesting investors bet against major US tech companies, or 'hyperscalers,' such as Microsoft and Amazon. They express concerns that the massive AI investments by these companies might not yield sufficient returns, potentially leading to lower stock values and the rapid obsolescence of current data centers. In contrast, Apple's stock has remained stable, offering investors a perceived safe haven due to its strong cash flow and predictable business. Apple, which reported $27.5 billion in earnings and $102.5 billion in revenue last quarter, plans to pay Alphabet Inc. about $1 billion annually for an AI model to enhance Siri. Morgan Stanley also forecasts Apple could become a significant force in robotics and physical AI, potentially generating $130 billion in revenue by 2040. Innovation continues with new entrants like Cephia, a Princeton University spin-off that launched on October 30 with $4 million in funding. Cephia is developing advanced AI-powered imaging sensors inspired by mantis shrimp eyes, aiming to improve applications in self-driving cars and medical diagnostics. This diverse landscape underscores the dynamic nature of the AI industry, marked by both immense potential and considerable financial risk.

Key Takeaways

• Rightmove plans to invest £60 million in AI over the next three years, expecting profit growth to slow to 3% to 5% in 2026 before rebounding to over 12% annual growth by 2030.
• Nvidia's stock fell 3.7%, resulting in a loss of over $450 billion in market value since Monday, contributing to a 1.1% drop in the S&P 500.
• Dell Technologies' AI server business is booming, with a backlog of $11.7 billion, including a $5.8 billion equipment deal with Microsoft as part of IREN's $9.7 billion agreement.
• OpenAI projects over $20 billion in yearly revenue this year and aims for hundreds of billions by 2030, having signed over $1.4 trillion in infrastructure deals.
• BCA Research analysts predict a future sell-off in AI stocks, advising against US hyperscalers like Microsoft and Amazon due to concerns about insufficient returns on large AI investments.
• Apple's stock remained stable amidst AI stock volatility, with the company reporting $27.5 billion in earnings and $102.5 billion in revenue last quarter.
• Apple plans to pay Alphabet Inc. approximately $1 billion annually for an AI model to enhance Siri.
• Asia-Pacific markets, including Japan's Nikkei 225 (down 2.11%) and South Korea's Kospi (down 1.47%), dropped due to concerns over high AI stock valuations.
• Cephia, a Princeton University startup, secured $4 million in funding to develop AI-powered imaging sensors for applications like self-driving cars and disease detection.
• Concerns are growing that large AI investments might not bring enough returns, potentially leading to lower profits and slower growth outside of core AI divisions.

Rightmove Stock Falls Due to Big AI Investments

Rightmove, a British real estate company, saw its stock drop by over 28% on Friday. The company lowered its expected operating profit growth for 2026 to 3% to 5%, down from 9% this year. This is because Rightmove plans to invest heavily in artificial intelligence to improve its systems, app, and search tools. CEO Johan Svanstrom believes these AI investments will pay off, leading to a 12% annual profit increase by 2030, with profits rebounding after 2028.

Rightmove Shares Drop Over AI Investment Plans

Rightmove's stock fell sharply, initially by 28%, then settling around 12% lower. Investors worried about the company's plans to invest heavily in artificial intelligence. Rightmove expects its profit growth to slow to 3% to 5% next year, compared to 8% to 10% in 2025. However, CEO Johan Svanstrom stated that AI is becoming central to their business and expects these investments to drive over 12% annual profit growth by 2030.

Rightmove Stock Plunges After Big AI Spending News

Rightmove's shares dropped significantly after the company announced plans to increase its investment in artificial intelligence. The property listing website expects to invest £60 million over the next three years, mainly in AI. This investment will cause profit growth to slow to 3% to 5% in 2026, down from 9% this year. CEO Johan Svanstrom believes AI is central to the business and expects profits to rebound after 2028, leading to over 10% annual revenue growth by 2030.

Rightmove Stock Drops Due to Major AI Investments

Rightmove's shares fell sharply after the company announced plans to invest heavily in artificial intelligence. The property website will spend £60 million on AI over the next three years. This investment will cause profit growth to slow to 3% to 5% in 2026, a decrease from 9% this year. CEO Johan Svanstrom stated that AI is crucial for their future and expects profits to recover after 2028, aiming for over 10% annual revenue growth by 2030.

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Dell's AI Server Business Booms With Huge Demand

Dell Technologies' business for AI-optimized servers is growing rapidly, with demand exceeding supply for two years. This strong demand has boosted Dell's growth and profit margins. The company's stock is up almost 40% this year and still seems like a good deal. Recently, IREN announced a $9.7 billion deal with Microsoft, which includes buying $5.8 billion worth of Dell equipment. Dell's backlog for AI servers has grown to $11.7 billion, showing continued high demand from companies like Microsoft.

Asia Markets Fall as AI Stock Concerns Grow

Asia-Pacific markets dropped on Friday, following losses on Wall Street, due to worries about the high value of artificial intelligence stocks. Major AI companies saw their shares fall in the US on Thursday. Japan's Nikkei 225 dropped 2.11%, and South Korea's Kospi declined 1.47%. Investors are also watching for China's October trade data, as exports are expected to slow. This comes amid weak demand in China due to a housing slump and job insecurity.

Cephia AI Raises $4M for Superhuman Sensors

Cephia, a new company from Princeton University, launched on October 30 with $4 million in funding. The company develops advanced imaging sensors using artificial intelligence and special materials. These sensors are inspired by mantis shrimp eyes, which can see polarized light and more colors than humans. Cephia aims to create sensors that can see through fog, find diseases, and make self-driving cars better. CEO Dr. David Fattal will use the money to grow the company and start production, with pilot projects already underway in the automotive and medical fields.

S&P 500 Falls as Nvidia Loses $450 Billion

The S&P 500 dropped by 1.1% on Thursday as traders reevaluated the high prices of AI stocks. Nvidia's stock fell 3.7%, causing the company to lose over $450 billion in market value since Monday. Other big tech companies also saw declines. There are concerns that large AI investments might not bring enough returns, leading to lower profits and slower growth outside of AI divisions. A recent labor report also showed that US companies planned to cut over 150,000 jobs in October, the highest number for that month since 2003.

OpenAI Aims for $20 Billion Revenue This Year

OpenAI CEO Sam Altman announced that the company expects to reach over $20 billion in yearly revenue this year. Altman also plans for OpenAI to grow to hundreds of billions in revenue by 2030. The company has recently signed over $1.4 trillion in deals for new infrastructure. OpenAI, which started as a nonprofit in 2015 and launched ChatGPT in 2022, is now valued at $500 billion but is not yet profitable. Altman stated that OpenAI does not seek government guarantees for its data centers.

Analysts Predict AI Stock Sell Off Suggests Trade

BCA Research analysts predict a future sell-off in artificial intelligence stocks. They suggest investors should bet against major US tech companies, known as hyperscalers, while investing in Asian chipmakers. BCA believes that the huge AI investments made by companies like Microsoft and Amazon might not bring enough returns, which could lower their stock values. They also worry that current data centers could quickly become outdated and the cost of computing power will drop. Asian chipmakers, however, are expected to continue benefiting from the demand for AI infrastructure.

Apple Becomes Safe Bet as AI Stocks Waver

Apple's stock remained stable while other major AI tech companies like Nvidia and Palantir saw their shares fall. Investors are now looking to Apple for its strong cash flow, stability, and predictable business in a risky market. Apple recently gave a good forecast, reporting $27.5 billion in earnings and $102.5 billion in revenue last quarter. While Apple has not spent heavily on AI like other tech giants, it plans to pay Alphabet Inc. about $1 billion yearly for an AI model to improve Siri. Morgan Stanley also predicts Apple could become a big player in robotics and physical AI, potentially generating $130 billion in revenue by 2040.

Sources

• UK's Rightmove stock tumbles over 28% as AI investments expected to weigh on 2026 profit
• Rightmove shares plummet amid AI spending plans
• Rightmove shares plummet over AI investment plans
• Rightmove shares plummet over AI investment plans
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• Porsche-Backed Princeton Spinout Cephia AI Scores $4M To Create Tiny Superhuman Sensors Like Mantis Shrimp Eyes
• SPX: S&P 500 Slides 1.1% as Traders Reassess AI Stocks. Nvidia Sheds $450 Billion
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• Apple regains safe-haven status as AI trade looks shakier