Key Takeaways
- Advanced Micro Devices saw shares decline approximately 4.8% Tuesday after reports surfaced that OpenAI failed to meet internal growth projections
- ChatGPT did not achieve OpenAI’s goal of one billion weekly active users in 2025, while revenue expansion decelerated
- Competition from Anthropic’s Claude and Alphabet’s Gemini has drawn users away from OpenAI platforms
- AMD maintains a supply partnership with OpenAI for data center hardware, creating uncertainty around future semiconductor orders
- First-quarter earnings are scheduled for May 5, with analysts projecting $1.28 EPS and $9.87 billion in revenue
Shares of Advanced Micro Devices tumbled Tuesday following a Wall Street Journal report indicating that OpenAI fell short of its internal benchmarks for both revenue generation and user expansion in 2025.
Advanced Micro Devices, Inc., AMD
According to the Journal’s reporting, OpenAI did not reach its ambitious target of one billion weekly active users for ChatGPT during the previous year. Additionally, the company experienced a deceleration in revenue growth. The report noted that users have been migrating to competing artificial intelligence platforms, such as Anthropic’s Claude and Alphabet’s Gemini.
OpenAI dismissed the report as “ridiculous,” but the company’s rebuttal failed to reassure market participants.
AMD shares declined as much as 4.8% during morning trading hours. The stock closed the session down approximately 3.72%.
The sell-off extended across AI semiconductor stocks more broadly. Given that OpenAI has an active supply arrangement with AMD for data center components, market participants grew concerned that diminished growth at OpenAI could translate into reduced chip orders going forward.
Market Reaction May Be Overblown
Certain market observers have questioned whether the negative reaction was warranted. Despite slower-than-anticipated growth, OpenAI continues to purchase AI semiconductors. Furthermore, competitors absorbing OpenAI’s former users — namely Anthropic and Gemini — are also significant chip purchasers.
This suggests that overall demand for AMD’s products may not have shifted as substantially as Tuesday’s price action would indicate.
Nonetheless, the underlying worry centers on whether the artificial intelligence spending surge has a more limited timeframe than market participants previously anticipated. If an industry leader like OpenAI is already experiencing growth slowdown, it prompts questions about the duration of elevated chip demand.
AMD has surged more than 50% year-to-date and has climbed over 248% during the past 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.
First-Quarter Results on Deck
AMD is scheduled to announce Q1 2026 financial results after market close on May 5. Analyst consensus anticipates adjusted earnings per share of $1.28 alongside revenue of $9.87 billion.
The chipmaker has exceeded Wall Street’s estimates in each of the previous eight consecutive quarters. This consistent performance record will be closely monitored as investors seek insight into data center demand trends and AI chip order flow.
Current analyst consensus rates AMD as a Moderate Buy, derived from 19 Buy recommendations and eight Hold recommendations issued over the past three months. The average analyst price target stands at $295.04, implying a potential decline of approximately 8.34% from present levels.
AMD finished Tuesday’s session trading at roughly $325.30.
