Intel Sinks 5.34% and Nvidia 2.94% in a Rough Day for Chips After FT Report on OpenAI Revenue

Chips Lead the AI Selloff: Intel -5.34%, Nvidia -2.94%

Semiconductors were the epicenter of Thursday's (October 8) selling. Intel (INTC) closed at $107.08, down 5.34% (previous close: $113.12) on volume of roughly 120 million shares, while Nvidia (NVDA) fell 2.94% to $230.48, per Alpha Vantage data. According to Yahoo Finance, the S&P 500 lost 0.5% and the Nasdaq Composite 1.3%, its second straight decline, while the Dow Jones Industrial Average edged up 0.1%.

The Trigger: Doubts Over OpenAI's Revenue

Per Yahoo Finance, the blow came from a Financial Times report saying OpenAI's annualized revenue was $20 billion lower than previously estimated. For a sector priced largely on the expectation of sustained AI infrastructure spending, the news revived the question of whether the profitability of the big AI developers can justify that spending.

Yields and Oil: the Macro Headwind

The pressure was not purely sector-specific. According to 24/7 Wall St., rising bond yields and higher oil prices revived worries about stubborn inflation, which hits growth stocks hardest because a higher discount rate reduces the present value of their future earnings. Yahoo Finance put the 10-year Treasury yield at 5.23%, Brent near $104 and WTI around $91 a barrel. Crude, which had spiked, eased after President Trump said the US "will not be attacking Iran at any time prior to the Midterm Elections."

Price and Volume Analysis

• Intel: the session ranged from a high of $111.60 to a low of $105.24, a spread of more than $6. Volume of ~120 million shares put it among the most actively traded names. 24/7 Wall St. adds an Intel-specific factor: the announcement that Elon Musk's companies will build and operate the "Terafab" facility in Texas leaves Intel's eventual role as a manufacturer unresolved.
• Nvidia: with about 113.9 million shares traded, it fell nearly three percentage points.
• Rest of the sector: per Yahoo Finance, Arm and Marvell fell more than 6% at points and Micron more than 5%, while the Philadelphia Semiconductor Index dropped as much as 4% before trimming losses.
• Leveraged ETFs: SOXL (3x the semiconductor index) closed -10.33% ($142.49), while SOXS, its bearish counterpart, rose 10.21%, a sign of tactical bets against the sector.

Sentiment and Market Read

The numbers suggest investors are separating two questions: near-term AI demand and the ability to monetize it. The OpenAI report hits the second, and a high-rate environment compounds it. The FT figures are as reported by the press and have not been independently verified here.

Levels to Watch

• For Intel, the intraday low of $105.24 and the prior close of $113.12 frame the near-term range.
• For Nvidia, the $230.48 close is the reference after shedding almost $7 in the session.
• For the sector as a whole, the 10-year yield and crude oil will keep setting the tone.

Implications for Investors

Two practical takeaways: first, semiconductor risk blends narrative (AI profitability) and macro (rates and inflation), and both can strike in the same session; second, leveraged products magnify these moves, as SOXL's -10.33% in a single day shows. This article is informational and not a recommendation to buy or sell.

Conclusion

The drop in Intel (-5.34%) and Nvidia (-2.94%) captures a session where doubts about OpenAI's revenue, elevated yields and expensive oil converged on the market's most richly valued sector. The Nasdaq losing 1.3% while the Dow rose shows how much current sentiment hinges on AI. The coming sessions will show whether this was a one-off adjustment or the start of a deeper reassessment.

Sources: Alpha Vantage (quotes and top movers); Yahoo Finance (index closes, crude and bond data, FT report); 24/7 Wall St. (yields, oil and Terafab context).