Key Takeaways
- Shares of AMD declined approximately 4.8% on Tuesday after The Wall Street Journal published findings showing OpenAI underperformed on its 2025 revenue and user expansion objectives
- OpenAI’s ChatGPT platform didn’t achieve the one billion weekly active user milestone in 2025, while revenue expansion decelerated
- Market share appears to be shifting toward competing platforms such as Anthropic and Google’s Gemini
- Given AMD’s existing supply partnership with OpenAI for data center hardware, investors expressed concerns regarding potential declining chip orders
- The company is scheduled to announce Q1 financial results on May 5, with analyst projections calling for $1.28 EPS and $9.87 billion in revenue
Shares of Advanced Micro Devices tumbled on Tuesday following a Wall Street Journal investigation that uncovered OpenAI’s failure to meet its internal 2025 benchmarks for both revenue generation and user acquisition.
Advanced Micro Devices, Inc., AMD
According to the publication, OpenAI’s ChatGPT service fell short of reaching one billion weekly active users throughout last year. Additionally, the company experienced a notable deceleration in revenue expansion. Market analysis suggests users are increasingly migrating toward alternative AI solutions, particularly Anthropic’s Claude platform and Google’s Gemini offering.
In response to the report, OpenAI issued a statement dismissing the Journal’s findings as “ridiculous.” However, the denial failed to reassure market participants.
AMD shares plummeted as much as 4.8% during morning trading hours. The stock ultimately closed the session down approximately 3.72%.
The sell-off rippled across the entire AI semiconductor sector. Given that OpenAI maintains an active procurement agreement with AMD for data center infrastructure components, market participants grew concerned that OpenAI’s decelerating growth trajectory could translate into diminished chip procurement volumes.
Analysts Question Market Reaction Intensity
Several market analysts have expressed skepticism about whether Tuesday’s price action was warranted. Despite experiencing slower expansion, OpenAI continues to purchase AI semiconductors. Furthermore, the competitors capturing OpenAI’s migrating users — namely Anthropic and Gemini — are themselves significant chip purchasers.
This dynamic suggests that overall demand for AMD’s products may not have deteriorated as substantially as Tuesday’s share price movement would indicate.
Nevertheless, the underlying concern centers on whether the artificial intelligence infrastructure investment cycle has a more limited duration than market participants previously anticipated. When a prominent AI leader like OpenAI begins experiencing growth deceleration, it naturally prompts questions about the sustainability of elevated semiconductor demand.
AMD has delivered impressive returns, climbing over 50% year-to-date and surging more than 248% over the trailing twelve months. Tuesday’s decline occurred on approximately 29 million shares traded — modestly below the three-month average daily volume of 32.47 million.
Quarterly Report Coming May 5
Advanced Micro Devices is scheduled to release its Q1 2026 financial results following market close on May 5. The consensus forecast among Wall Street analysts anticipates adjusted earnings per share of $1.28 alongside revenue of $9.87 billion.
AMD has consistently exceeded Wall Street’s earnings projections for eight consecutive quarters. This impressive performance history will receive heightened scrutiny as investors seek definitive information regarding data center demand trends and AI chip order volumes.
Current analyst sentiment toward AMD stands at Moderate Buy, derived from 19 Buy recommendations and eight Hold recommendations issued over the most recent three-month period. The consensus price target of $295.04 implies potential downside of approximately 8.34% from present trading levels.
AMD concluded Tuesday’s session at roughly $325.30.
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