Morning Commentary: OpenAI Revenue Shortfall Hits AI and Chip Stocks

MUMBAI, 9 OCTOBER: Technology and semiconductor shares sold off after OpenAI reported annualised revenue of about $50B, roughly $20B below expectations.  The report deepened doubts over debt-funded AI infrastructure spending.

The Nasdaq fell 1.25% to 27,193, and the S&P 500 lost 0.47% to 7,765, while the Dow edged up 0.09% to 51,225. Oracle slid about 5.5%, Micron 4.8%, Broadcom 4.4%, AMD nearly 4% and Nvidia nearly 3%.

Fresh tanker attacks in the Persian Gulf and Strait of Hormuz, hurricane-related cuts to US output and reports that the Pentagon is preparing major strikes added to the crude rally – Brent oil rose above $103. Trump said he does not want an Iran deal, though crude eased after he said he would not attack before the midterms.

The 10-year yield eased to about 5.23% after strong demand at the 30-year auction. Fed officials Waller and Musalem signalled further hikes, with markets pricing in about 83% odds of a December hike versus 17.7% for October.

Trump administration announced a sweeping suspension of several massive tech and IT service giants from the Permanent Labour Certification (PERM) program—the essential employer-sponsored pathway used by H-1B holders to obtain a Green Card.

TCS’s Q2FY27 performance signals a gradual improvement in growth momentum (+0.5% QoQ CC), led by its international business and accelerating AI adoption, even as macro remains unchanged and discretionary spending is muted.

The rupee ended with minor losses, depreciating 1 paise to close at 96.78. Pressure on the Indian rupee persisted, driven by rising crude oil prices and sustained FII outflows.

Nifty breached the previous swing-low support at 22,217 as well as the key April 2026 swing low of 22,182. The decisive breakdown of these levels indicates a further escalation in selling pressure and an intensification of the ongoing downtrend. The next support for the index is placed near 21,750, while 22,400 and 22,600 are likely to act as immediate resistance levels.

Indian equities are poised for a moderately higher open, on firm Asian cues.

Report by: Mr. Devarsh Vakil, Head of Prime Research at HDFC Securities

(Disclaimer: The information provided here is investment advice only. Investing in the markets is subject to risks and please consult your advisor before investing)

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