Asian tech stocks slide as OpenAI revenue forecast disappoints

Asian stocks opened Friday in a mixed state, with tech stocks facing renewed concerns about the AI investment boom, while oil prices dropped after Donald Trump ruled out a potential pre-election strike against Iran. The artificial intelligence sector has seen a boost in recent weeks, following Nvidia's record high and speculation around its upcoming earnings season.

However, OpenAI's revenue forecast of $50 billion for the year, less than the previously anticipated $70 billion, has caused concern. This has led to a sharp decline in tech stocks, with Nvidia down nearly three percent and Nasdaq ending over one percent lower. Microsoft, AMD, and Amazon also experienced significant losses. In contrast, Hong Kong, Sydney, Wellington, Manila, and Jakarta saw an increase in their stock prices.

Meanwhile, traders found some relief in the drop in oil prices following Trump's refusal to strike Iran before the midterm elections. The situation was further complicated by the Houthi attacks on Riyadh airport and Saudi oil facilities, as well as the Federal Reserve's expectation for another interest rate hike before the year's end.