Oracle, AMD, and other AI-driven names sink, with Big Tech earnings on deck

Investors sold off stock of companies tied to OpenAI (OPAI.PVT) after the Wall Street Journal reported the AI developer recently missed sales and user targets, renewing concerns about overspending in the sector.

Citing people familiar with the matter, the report said the startup fell short of its internal goal of 1 billion weekly active users for OpenAI’s ChatGPT by year-end. It also reportedly missed its annual revenue target for the product.

Oracle and CoreWeave led the losses, down about 4% and 5%, respectively.

The news comes ahead of Microsoft’s Q1 update this week, along with results from four other “Magnificent Seven” Big Tech companies — Meta (META), Amazon (AMZN), Alphabet (GOOG, GOOGL), and Apple (AAPL). The quarterly results mark the first true test of investor appetite for the tech sector and its massive AI spending since the war in Iran began.

Also raising the stakes are recent moves by these companies: Meta has announced it will lay off 10% of its workforce, or about 8,000 roles; Microsoft said it will offer certain US employees voluntary buyouts; and Apple’s leadership is undergoing a transformation after CEO Tim Cook announced he will step down on Sept. 1 and be replaced by senior vice president of hardware John Ternus.

Tech companies are increasingly looking for ways to save cash, as they spend billions constructing data centers and developing AI models.

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Oracle, AMD, and CoreWeave stocks sink after report says OpenAI missed sales, user targets

Yahoo Finance’s Ines Ferré reports:

Oracle (ORCL), AMD (AMD), CoreWeave (CRWV), and other AI-driven names sank on Tuesday. Investors sold off shares of companies tied to OpenAI (OPAI.PVT) after The Wall Street Journal reported the AI developer recently missed sales and user targets, renewing concerns about overspending in the sector.

Citing people familiar with the matter, the report said the startup fell short of its internal goal of 1 billion weekly active users for its chatbot ChatGPT by year-end. It also reportedly missed its annual revenue target for the product. Meanwhile, Google’s (GOOG) competing AI bot, Gemini, grew over the past year, eating into OpenAI’s market share.

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Mon, April 27, 2026 at 4:53 PM UTC

Elon Musk and OpenAI battle goes to trial

The years-long legal battle between Elon Musk and OpenAI (OPAI.PVT) finally goes to court on Monday.

Jury selection in the lawsuit kicks off Monday in the US District Court for the Northern District of California, with opening arguments expected to begin Tuesday.

Tesla Motors CEO Elon Musk, Y Combinator president Sam Altman, and The New York Times Financial Columnist Andrew Ross Sorkin speak onstage at Yerba Buena Center for the Arts on Oct. 6, 2015, in San Francisco, Calif. (Mike Windle/Getty Images for Vanity Fair) · Mike Windle via Getty Images

The witness list for both sides is a who’s who of tech heavyweights, including Musk, OpenAI CEO Sam Altman, and Microsoft CEO Satya Nadella. Depending on how the plaintiffs decide, Musk could take the witness stand as early as Tuesday.

The outcome of the case could have a significant impact on the AI industry and, if it goes Musk’s way, could derail OpenAI’s future IPO plans.

In his suit, Musk accuses Altman, OpenAI president Greg Brockman, and others of misleading him about the company’s plans to transition from a nonprofit to a for-profit business. Microsoft (MSFT), which has invested billions in OpenAI, is also named as a defendant in the case.

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Mon, April 27, 2026 at 3:23 PM UTC

OpenAI and Microsoft amend deal

Microsoft (MSFT) on Monday announced an amended long-term agreement with OpenAI (OPAI.PVT) that will see the company no longer have exclusive access to the AI startup’s intellectual property and AI models, while also altering its revenue-sharing deal with OpenAI.

The news comes ahead of Microsoft’s earnings report on Wednesday, and just six months after the two companies formalized an agreement that allowed OpenAI to transform into a for-profit business.

Microsoft CEO Satya Nadella speaks with OpenAI CEO Sam Altman in Seattle, Washington, on May 19, 2025. (Jason Redmond / AFP via Getty Images) · JASON REDMOND via Getty Images

Under the terms of that deal, Microsoft was given exclusive access to OpenAI’s IP and models until the company achieved artificial general intelligence (AGI), or AI that’s as smart or smarter than humans. The new agreement, however, eliminates that clause, allowing OpenAI to provide its models to Microsoft’s competitors.

Microsoft’s Azure will continue to serve as OpenAI’s primary cloud platform and get access to its latest products first, but the new agreement means OpenAI can now offer all of its services through competing cloud providers, such as Amazon Web Services.

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Mon, April 27, 2026 at 11:48 AM UTC

Qualcomm jumps 12% as analyst points to next big catalyst for chipmaker

Qualcomm (QCOM) stock jumped more than 11% on Monday, extending Friday’s 11% jump.

Tech analyst Ming-Chi Kuo from TF International Securities posted on X that OpenAI (OPAI.PVT) is working with Qualcomm and Taiwanese semiconductor designer MediaTek (2454.TW) to develop smartphone processors.

The social media post reinforced optimism that artificial intelligence could kick off a new wave of smartphone upgrades, a big win for chipmakers focused on mobile processors. Qualcomm is best known for its chips that power smartphones. Mass production of the processors is expected in 2028.

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Mon, April 27, 2026 at 11:33 AM UTC

Mag 7 stocks open their books after a tough start to the year

Yahoo Finance’s Myles Udland and Jake Conley write about what to expect from Big Tech earnings this week:

The Magnificent Seven stocks, the Big Tech heavyweights that have for the past decade powered the American economy, spent much of the first quarter languishing. During the last week of March, the companies shed a combined $850 billion in market value, and by the end of the month, all seven members were negative on the year.

Yet, as our own Brian Sozzi pointed out, as peace talk headlines began percolating in the Middle East, tech has gotten a bid — and not without reason.

Magnificent Seven net income is estimated to grow 25% in 2026 compared to 11% for the S&P 493, with that relative outperformance on net income expected to stretch into 2027, according to Morgan Stanley. The Roundhill Magnificent Seven ETF (MAGS), which tracks the basket of tech leaders, has returned 13% over the past month against a gain of 9% on the S&P 500.

This week’s earnings results will be the first true test of investor appetite for the tech sector since the war in Iran began rippling through the global economy in late February. The reports will also give investors an update on how the companies are thinking about their massive AI spending projections set at the beginning of this year through fourth quarter earnings — especially after Meta announced 8,000 layoffs and Microsoft began offering buyout packages.

Read more here.