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AI revenue doubts unsettle chip stocks

Questions over whether OpenAI’s revenues can justify hefty investment in artificial intelligence weighed on US technology stocks on Thursday, while the Dow Jones finished marginally higher. The pressure on chipmakers extended into Friday’s Asian session, although gains in Hong Kong and Australia left the region’s equity performance mixed. European shares also ended Thursday lower. Oil retreated on Friday after US President Donald Trump said the US would refrain from attacking Iran ahead of the midterm elections.

  • Date
  • Author Shane Strowmatt, Senior Investment Writer
  • Reading time 5 minutes

Artificial intelligence code

Asian shares mixed as chipmakers slide

Asian equities traded unevenly on Friday, with Japan’s Nikkei 225 down 0.1% and China’s Shanghai Composite losing 1.2%, while Hong Kong’s Hang Seng gained 1.6% and Australia’s S&P/ASX 200 rose 0.6%. Semiconductor shares declined after a Financial Times report suggested ChatGPT developer OpenAI’s annualised revenue fell short of previously indicated levels, prompting doubts about its substantial investment commitments. OpenAI investor SoftBank dropped 5%. Nvidia-backed data-centre operator Firmus postponed a planned IPO worth approximately USD 5 billion, opting instead to raise funds privately amid market turbulence.

Gold gains as US dollar and yields retreat

Spot gold advanced 1.6% to USD 4200.46 per ounce, supported by a weaker US dollar and a second consecutive session of falling US ten-year Treasury yields. Silver rose 2.2% to USD 60.47 per ounce. US Treasury yields were trading lower, with the ten-year yield at 5.2% and the two-year yield at 4.8%. St Louis Federal Reserve President Alberto Musalem said on Thursday that additional rate increases could be necessary over the next six to nine months to return inflation to the central bank’s 2% target. Bitcoin declined 0.3% to around USD 82,500 on Friday.

US technology shares fall on AI concerns

US equities diverged on Thursday, with the Nasdaq-100 falling 1.4% to 30,725.81 points and the S&P 500 losing 0.5% to 7765.36, while the Dow Jones Industrial Average edged up 0.1% to 51,231.64. News reports put ChatGPT developer OpenAI’s annualised revenue at nearly USD 50 billion at the end of September, below some recent estimates despite growth from a year earlier, raising concerns over the justification for heavy AI investment. Semiconductor shares including Nvidia, AMD and Intel declined between 2.9% and 6.5%. Energy producers benefited from sharply higher oil prices, with Chevron gaining 3.1% and ExxonMobil advancing 2.7%. On Friday, oil prices fell, with Brent crude oil futures declining 1.3% to USD 102.89 per barrel and West Texas Intermediate (WTI) futures losing 1.3% to USD 90.35 per barrel, after US President Donald Trump ruled out attacks on Iran before November’s midterm elections.

German exports fall as trade surplus narrows

German goods exports, adjusted for calendar and seasonal effects, fell 0.8% to EUR 137.6 billion in August but increased 6.2% year-on-year, according to provisional data released by Destatis on Thursday. Imports rose 0.9% from July to EUR 118.1 billion, putting them 5.5% above their year-earlier level. The trade surplus narrowed to EUR 19.5 billion from EUR 21.6 billion in July, although it exceeded the EUR 17.6 billion recorded in August 2025. Exports declined to both EU and non-EU markets, with shipments to the US falling 6.3% month-on-month despite remaining 22.6% above their year-earlier level. On Thursday, the Euro Stoxx 50 fell 0.9%, Germany’s DAX lost 1.2% and the Swiss Market Index declined 1.2%.

Corporate and economic calendar

Corporate news in focus: There is no major corporate news scheduled today.

Economic data in focus: SECO Swiss consumer sentiment (09:00), Italian manufacturing production (10:00), Canadian unemployment rate (14:30), University of Michigan Consumer Sentiment Index (16:00).

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Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.