Global technology stocks resumed their selling streak in Friday’s trade, but this time the weakness was driven not by valuation concerns or worries over hefty AI spending, but by media reports suggesting a potential delay in OpenAI’s initial public offering (IPO), which triggered a brief trading halt on South Korea’s Kospi index.
The impact was also felt on Wall Street, where major chipmakers and technology stocks traded lower as negative sentiment spread across global markets.
A New York Times report suggesting that OpenAI could delay its initial public offering (IPO) until 2027 also highlighted how quickly sentiment can shift across the AI sector.
The report triggered a 13% plunge in shares of OpenAI backer SoftBank Group Corp., marking their steepest one-day decline since August 2024, as investors worried that a delayed IPO could postpone returns on its investment.
The sell-off reflected broader uncertainty over whether the AI investment boom can sustain its momentum if the sector’s most anticipated public listing is pushed back. Expectations of a major OpenAI listing had helped push SoftBank shares to record highs and lifted its market value above Toyota Motor Corp.’s last month.
This has been another volatile week for the technology sector. While AI optimism has been enough to drive markets higher for much of the past year, investors are becoming increasingly focused on whether the enormous capital spending required to build AI infrastructure will generate sufficient returns.
Although Micron Technology’s strong earnings provided some reassurance, investors remain cautious amid elevated valuations and uncertainty over the pace of future AI spending. Investors also appear to be becoming more selective in picking AI-linked stocks rather than buying the sector broadly.
OpenAI weighs delaying blockbuster IPO
OpenAI is considering holding off on its public debut until next year, The New York Times reported on Thursday, citing three people involved in the company’s deliberations.
The ChatGPT maker has recently submitted IPO paperwork to the US Securities and Exchange Commission and is working with Goldman Sachs and Morgan Stanley on a potential listing as soon as this fall, according to people familiar with the matter.
The New York Times reported that OpenAI had considered going public as early as the second half of 2026, with Chief Executive Officer Sam Altman reportedly pushing advisers toward a $1 trillion valuation target.
However, bankers advising OpenAI warned that heightened volatility in technology stocks could weaken investor appetite for the offering, according to the report.
The report also said that OpenAI is trying to catch up with its younger rivals in the race to win enterprise customers willing to pay large sums for AI tools that improve workplace productivity.
Why an OpenAI IPO delay matters for chip stocks
A delay in OpenAI’s blockbuster IPO would likely be viewed as a near-term headwind for chip stocks, particularly in technology-heavy markets such as South Korea and Taiwan, whose semiconductor sectors have significantly outperformed global peers amid massive AI infrastructure spending by hyperscalers.
When high-profile, mega-cap unicorns such as OpenAI delay their public debuts because of market volatility or to preserve lofty valuation expectations, investors tend to become more cautious toward the broader AI ecosystem.
Since the artificial intelligence boom was ignited by the launch of OpenAI’s ChatGPT in late 2022, demand for semiconductor and memory chips has surged dramatically, driving one of the strongest rallies in global technology markets in recent history.
The growing demand for artificial intelligence and data-centre infrastructure has also propelled several global technology companies into the $1 trillion market-capitalisation club, underscoring how closely the fortunes of chipmakers have become tied to the AI investment cycle.
(With inputs from agencies)
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
