Key Highlights
- Shares of AMD declined approximately 4.8% Tuesday after Wall Street Journal reporting indicated OpenAI fell short of internal revenue and user growth projections
- ChatGPT failed to achieve the one billion weekly active user milestone in 2025, while revenue expansion decelerated
- Competitor platforms including Anthropic’s Claude and Alphabet’s Gemini have been attracting users
- AMD maintains a supply agreement with OpenAI for data center hardware, creating questions about future chip orders
- The company releases Q1 results on May 5, with analyst forecasts calling for EPS of $1.28 and revenue reaching $9.87 billion
Advanced Micro Devices shares experienced a notable decline Tuesday following Wall Street Journal reporting that highlighted OpenAI’s failure to meet internal 2025 revenue and user growth benchmarks.
Advanced Micro Devices, Inc., AMD
The Journal’s reporting indicated ChatGPT missed the one billion weekly active user target for the previous year. Revenue expansion also experienced a slowdown. Competing AI platforms, particularly Anthropic’s Claude and Alphabet’s Gemini, have been capturing market share from users.
OpenAI responded by dismissing the Journal’s reporting as “ridiculous.” This statement failed to reassure market participants.
AMD declined as much as 4.8% during mid-morning hours. The stock finished the session down approximately 3.72%.
The downturn extended across AI semiconductor stocks more broadly. Given AMD’s existing supply arrangement with OpenAI for data center components, market participants expressed concern that diminished growth at OpenAI could translate to reduced chip purchasing activity going forward.
Market Reaction Analysis
Several analysts have raised questions about whether the magnitude of the selloff was warranted. OpenAI continues to purchase AI chips despite experiencing slower expansion. Competitors capturing OpenAI’s migrating users — including Anthropic and Gemini — maintain active chip procurement programs.
This dynamic suggests the overall demand environment for AMD may have experienced less fundamental change than Tuesday’s price action would indicate.
The larger concern centers on whether AI infrastructure spending has a more limited duration than earlier forecasts suggested. When a leading AI company like OpenAI shows growth deceleration, it prompts examination of how long elevated chip demand will persist.
AMD shares remain up over 50% for the current year, with gains exceeding 248% over the trailing twelve months. Tuesday’s decline occurred on volume of approximately 29 million shares — modestly below the three-month average daily volume of 32.47 million.
Upcoming Q1 Results
AMD plans to release Q1 2026 financial results after market close on May 5. Analyst consensus calls for adjusted earnings per share of $1.28 with revenue totaling $9.87 billion.
The company has surpassed Wall Street estimates in each of the previous eight reporting periods. This performance history will receive heightened attention as market participants seek insight into data center demand trends and AI chip order flow.
The current analyst consensus for AMD stands at Moderate Buy, reflecting 19 Buy ratings and eight Hold ratings issued during the past three months. The mean price target sits at $295.04, representing potential downside of approximately 8.34% from present levels.
AMD finished Tuesday’s session trading near $325.30.
