NEW YORK — The Nasdaq Composite fell on Tuesday as concerns over artificial intelligence company valuations weighed on technology stocks, following a report that OpenAI had missed key internal revenue and user targets.
The tech-heavy index declined 0.9 percent to close at 24,663.80, according to market data. The S&P 500 lost 0.49 percent to end at 7,138.80, while the Dow Jones Industrial Average slipped 0.05 percent to 49,141.93.
The decline was driven by weakness in stocks linked to the artificial intelligence boom. Nvidia shares fell 1.6 percent, while shares of Oracle, OpenAI’s largest cloud provider, and CoreWeave each dropped 4 percent or more, dealers said. The moves came after The Wall Street Journal reported that OpenAI had fallen short of its own internal projections for revenue and user growth as it prepares for a potential initial public offering.
Traders and analysts attributed the broader sector pressure to renewed investor caution about high valuations in the AI space and questions over near-term monetization of the technology. Details on the exact scale of OpenAI’s shortfalls remained limited to the reported internal targets.
“Troubles at OpenAI sent tremors through technology stocks on Tuesday,” the Wall Street Journal noted in its market coverage.
The sell-off occurred amid other market crosscurrents, including gains in energy shares tied to developments in global oil markets. However, technology names underperformed significantly.
Major technology and semiconductor companies have driven much of the market’s gains in recent years on optimism about artificial intelligence applications. Tuesday’s trading reflected periodic episodes of profit-taking and reassessment in the sector.
As of Tuesday evening, no immediate comments were available from OpenAI on the reported figures. Representatives for Nvidia and Oracle did not respond to requests for comment on the session’s moves.
Market participants continue to monitor upcoming corporate earnings from major technology firms for further signals on AI-related spending and returns. Trading volumes were in line with recent averages.
The broader market closed mixed, with defensive and energy sectors helping to limit losses outside of technology. No further details on specific sector rotations or institutional flows were immediately available.
