Intel (INTC 0.55%) stock is moving lower Tuesday in conjunction with a wave of bearish momentum for artificial intelligence (AI) companies. The chip giant's share price was down 1.3% as of 3:40 p.m. ET. At the same point in the daily sessions, the S&P 500 was down 0.5%, and the Nasdaq Composite was down 0.9%.
AI stocks are moving lower in Tuesday's trading following reports that OpenAI's sales have come in lower than expected. Despite the pressures, Intel's share price has seen a significant recovery as the day has progressed. The stock had been off as much as 4.9% earlier in the session.
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Intel stock slips on OpenAI news
The Wall Street Journal recently reported that OpenAI had missed internal projections for revenue and user growth. As one of the most influential players in the AI space, the company's performance could have significant implications for hardware players. While Intel stock has surged roughly 127% higher year to date thanks in large part to hopes that the company's chip foundry business is poised to take off, investors are feeling more cautious following recent news about OpenAI's business.
NASDAQ: INTC
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What's next for Intel?
Intel stock has rocketed higher this year thanks to indications that the company's foundry business is attracting interest from big-tech customers. While news that OpenAI's sales and user growth metrics may be falling short of internal expectations raises some important questions about AI engagement and monetization dynamics, it doesn't necessarily mean that the potential growth story for Intel's foundry business is collapsing. Intel stock has become a riskier bet following its recent valuation run-up, but investors shouldn't read too much into reports of OpenAI's recent performance.
