FINWIRES · TerminalLIVE
FINWIRES

Concerns Fueled by OpenAI Report Overblown as Demand Remains Strong, Wedbush Says

By

-- OpenAI continues to see strong enterprise demand, Wedbush Securities said, dismissing growth concerns that surfaced after a report showed that the ChatGPT parent missed its sales targets.

Shares of several chip makers came under pressure Tuesday, including Nvidia (NVDA), Broadcom (AVGO) and Advanced Micro Devices (AMD), as The Wall Street Journal reported that OpenAI recently fell short of its own targets for new users and revenue.

Chief Financial Officer Sarah Friar told other companies that OpenAI may not be able to pay for computing contracts if revenue growth doesn't accelerate, The Journal reported. OpenAI is aiming for an initial public offering, according to media reports.

"Overall, we believe OpenAI has been tracking very high demand on both the consumer and enterprise front and we strongly disagree with the notion that growth is weakening," Wedbush analyst Dan Ives wrote in a client note Tuesday. "We believe that recent concerns around OpenAI are overblown with the company having enough capital to fulfill its compute capacity needs over at least the next three years following the company's recent $122 billion funding round."

The brokerage allayed concerns particularly about Oracle (ORCL), which counts OpenAI among its largest cloud customers. OpenAI in September 2025 signed a deal to purchase $300 billion in computing power from Oracle over a five-year period, The Journal reported at the time.

That deal, which reflects the bulk of Oracle's $553 billion backlog, is expected to drive $30 billion in revenue for the cloud computing company, according to Wedbush.

Oracle shares declined 3.6% in late Tuesday afternoon trade, and have slumped about 14% so far this year.

"We believe the pullback in (Oracle) shares represent a solid buying opportunity with OpenAI set to go public by the end of this year providing the company with fresh access to capital from public markets," Ives said.

Last month, Oracle reported fiscal third-quarter results that surpassed Wall Street's estimates, buoyed by strong demand for cloud computing amid an artificial intelligence boom. Earlier this year, the company said it was planning to raise up to $50 billion to expand its cloud infrastructure business and add capacity to meet demand from some of the largest tech companies.

Price: $166.51, Change: $-6.46, Percent Change: -3.73%

Related Articles

Mining & Metals

First Quantum Minerals Swings to a Loss in the First Quarter

First Quantum Minerals (FM.TO) reported a first-quarter loss despite higher revenue, as the company continues to face operational challenges linked to the Middle East conflict and its impact on supply chains.The company posted an adjusted loss, excluding most one-time items, of US$147 million, or US$0.18 per share, compared with an adjusted profit of US$5 million, or US$0.01, in the prior-year period. It missed FactSet analysts estimates of US$0.03 in earnings per share.Revenue for the three months ended March 31, rose 18% year over year to US$1.40 billion from US$1.19 billion a year earlier.. It exceeded FactSet estimates of US$1.36 billion.For 2026, the company raised its copper production guidance to 405,000-475,000 tonnes. Gold production guidance was lowered to 150,000-175,000 ounces from 175,000-200,000 ounces, reflecting a delay in the transition of Guelb Moghrein to a gold operation to 2027, partially offset by expected gold output from processing stockpiled ore at Cobre Panama."Our long standing investments in innovation and electrification, including trolley-assist, continue to structurally reduce fuel intensity and our sites are advancing additional initiatives to further improve efficiency. We expect the increases in fuel prices to impact our cost base in the second quarter," said chief executive Tristan Pascall. Quantum.The company said it expects to produce between 405,000 - 475,000 tonnes of copper this year, up from in January estimate of 375,000 - 435,000 tonnes, including 30,000 to 40,000 tonnes from Cobre Panama as it readies to resume processing stockpiled ores. It lowered its gold production guidance to 150,000 - 175,000 ounces from its prior 175,000 - 200,000 ounce estimate. Its nickel production guidance was unchanged.The company's shares closed down $1.63 at $34.29 on Toronto Stock Exchange.

$FM.TO
Insider Trading

United Therapeutics Insider Sold Shares Worth $5,688,319, According to a Recent SEC Filing

James Edgemond, CFO and Treasurer, on April 27, 2026, sold 10,000 shares in United Therapeutics (UTHR) for $5,688,319. Following the Form 4 filing with the SEC, Edgemond has control over a total of 18,876 common shares of the company, with 18,876 shares held directly.SEC Filing:https://www.sec.gov/Archives/edgar/data/1082554/000163617826000013/xslF345X05/primarydocument.xml

$UTHR
Research

Research Alert: Bkng: Q1 Beat Overshadowed By Lower Full-year Growth Expectations

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:BKNG reported EPS of $1.14, up 14% and beating the $1.09 consensus, while revenue grew 16% to $5.5B, meeting consensus. Adjusted net income margin declined 80 bps to 16.4% due to strategic U.S. investments and Middle East conflict headwinds, though gross bookings expanded 15% to $53.8B. The quarter reinforced BKNG's competitive positioning with continued market share gains and margin expansion despite geopolitical disruption. Management reduced full-year guidance to high-single-digit to low-double-digit gross bookings growth and high-single-digit revenue growth, with Q2 expecting 2%-4% room night growth. The company returned $3.6B through repurchases and declared a $0.42 dividend, while implementing a 25-for-1 stock split effective April 2, 2026. We view the guidance reduction as prudent given near-term uncertainty, though the key question remains whether this reflects temporary geopolitical disruption or more structural travel demand softness.

$BKNG