Markets Pull Back From Record Highs as AI Trade Cools; OpenAI Revenue Concerns Spark Selloff

Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets are pulling back from record highs as the red-hot AI trade cools off. From semiconductors to data center infrastructure to power equipment, the complex had become extended after a historic run, making some selling pressure expected. The catalyst behind this rush of selling was a Wall Street Journal report on OpenAI, which said the AI company missed its revenue and new-user growth targets at the end of last year. It also said that CFO Sarah Friar was worried about the company's ability to meet future compute contracts if revenue doesn't grow fast enough. OpenAI pushed back against the story, with CEO Sam Altman and Friar telling CNBC in a joint statement that they are "totally aligned on buying as much compute as we can and working hard on it together every day." The idea that OpenAI may not have enough money to pay for its ambitious compute deal isn't new, but that doesn't make it true. We saw similar stories written last November, and since then, OpenAI has raised hundreds of billions of dollars, including $122 billion last month. The company's ability to raise money at higher valuations suggests there aren't any near-term concerns about its growth or ability to meet its obligations. The company has also gained some discipline recently, shutting down the text-to-video app Sora to better allocate compute resources to more important areas. Also, there is a global compute capacity shortage, meaning hyperscalers would likely move quickly to secure any incremental capacity that becomes available. If Amazon , Alphabet , Microsoft , and Meta Platforms report strong revenue in their earnings reports on Wednesday after the bell and point to increased AI spending ahead, sentiment could quickly recover. Still, the damage was done, and the stocks that ran up quickly are taking the elevator down, making another good lesson in why parabolic moves should be met with sales, not a chase. We'll get the latest on the Starbucks turnaround plan when the coffee retailer reports after the closing bell on Tuesday. Other companies scheduled to report include Robinhood , Bloom Energy , Seagate Technology , Teradyne , Visa , Mondelez , T-Mobile , NXP Semiconductors , Booking Holdings , and Caesars Entertainment. Before the opening bell on Wednesday, we'll see earnings from Sofi , Amphenol , Humana , and Brinker International . Later in the day is Jerome Powell's final FOMC meeting as Fed Chair. His press conference will begin at 2:30 p.m. ET.