We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Over the past few weeks, three bearish AI headlines have dragged down the industry and sparked fear, uncertainty, and doubt among investors. Although short-term price action has been negative and bears have been in control, the headlines are misleading or downright inaccurate. Below are the three headlines:
1. "OpenAI's Annualized Revenue Nears $50B, Below Earlier $70B Reports": Earlier this month, the Financial Times reported that OpenAI's recent revenue growth was $20 billion below what Wall Street had expected. However, the article's editor failed to account for how OpenAI calculates revenue. In reality, the $70 billion revenue figure was never revised down, it was a completely different number. The $70 billion annualized revenue reported in late September by Axios and Reuters included enterprise sales, which more than doubled since July. Conversely, the FT's $50 billion OpenAI revenue figure did not include the full value of sales through cloud partners. In other words, nothing has changed. The $70 billion gross revenue and $50 billion net revenue remained the same, signaling that OpenAI's business is still growing rapidly.
2. "Meta Muse Growth Plateaus": Recent headlines suggest that Meta Platform's agentic AI platform "Muse" is seeing sluggish growth. However, data show that Muse is growing faster than any AI platform since ChatGPT launched in late 2022.
3. "Why this Little Known Chinese Chipmaker Has Caused a Global Stock Rout": Earlier this week, memory-related stocks like Micron,SK Hynix and SanDisk fell amid reports that China-based ChangXin Memory Technologies has made progress on new architecture that will increase memory density on its AI chips. Memory stocks have soared over the past few years as demand has dramatically overwhelmed supply. While a higher memory supply is bearish for names like Micron, investors have overreacted for a few reasons.
First, CXMT has difficulty accessing chipmaking equipment from companies like ASML due to U.S. export controls. Second, the legacy memory makers still have a wide technological advantage over CXMT. In other words, companies are unlikely to dump SKHY or MU in favor of CXMT technology.
Bottom Line
Short-term headline noise has led to bearish price action among AI leaders. However, misinterpreted revenue metrics, overstated platform slowdowns, and exaggerated competitive threats have created an artificial wave of panic.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
View the Zacks #1 Rank List
Image: Bigstock
Zacks Investment Ideas feature highlights: Meta Platform, Micron, SK Hynix, SanDisk and and ASML
For Immediate Release
Chicago, IL – October 14, 2026 – Today, Zacks Investment Ideas feature highlights Meta Platform (META - Free Report) , Micron (MU - Free Report) , SK Hynix (SKHY - Free Report) , SanDisk (SNDK - Free Report) and ASML (ASML - Free Report)
Bearing AI Headlines: An Artificial Wave of Panic
Misleading AI Headlines Drag Down Memory Names
Over the past few weeks, three bearish AI headlines have dragged down the industry and sparked fear, uncertainty, and doubt among investors. Although short-term price action has been negative and bears have been in control, the headlines are misleading or downright inaccurate. Below are the three headlines:
1. "OpenAI's Annualized Revenue Nears $50B, Below Earlier $70B Reports": Earlier this month, the Financial Times reported that OpenAI's recent revenue growth was $20 billion below what Wall Street had expected. However, the article's editor failed to account for how OpenAI calculates revenue. In reality, the $70 billion revenue figure was never revised down, it was a completely different number. The $70 billion annualized revenue reported in late September by Axios and Reuters included enterprise sales, which more than doubled since July. Conversely, the FT's $50 billion OpenAI revenue figure did not include the full value of sales through cloud partners. In other words, nothing has changed. The $70 billion gross revenue and $50 billion net revenue remained the same, signaling that OpenAI's business is still growing rapidly.
2. "Meta Muse Growth Plateaus": Recent headlines suggest that Meta Platform's agentic AI platform "Muse" is seeing sluggish growth. However, data show that Muse is growing faster than any AI platform since ChatGPT launched in late 2022.
3. "Why this Little Known Chinese Chipmaker Has Caused a Global Stock Rout": Earlier this week, memory-related stocks like Micron, SK Hynix and SanDisk fell amid reports that China-based ChangXin Memory Technologies has made progress on new architecture that will increase memory density on its AI chips. Memory stocks have soared over the past few years as demand has dramatically overwhelmed supply. While a higher memory supply is bearish for names like Micron, investors have overreacted for a few reasons.
First, CXMT has difficulty accessing chipmaking equipment from companies like ASML due to U.S. export controls. Second, the legacy memory makers still have a wide technological advantage over CXMT. In other words, companies are unlikely to dump SKHY or MU in favor of CXMT technology.
Bottom Line
Short-term headline noise has led to bearish price action among AI leaders. However, misinterpreted revenue metrics, overstated platform slowdowns, and exaggerated competitive threats have created an artificial wave of panic.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.