Key Takeaways
- Shares of AMD declined approximately 4.8% on Tuesday in response to a Wall Street Journal article detailing OpenAI’s failure to meet internal revenue and user expansion objectives
- The ChatGPT developer did not achieve its goal of attracting one billion weekly active users during 2025, while experiencing a deceleration in revenue expansion
- Market participants have been gravitating toward alternative platforms such as Anthropic’s offerings and Alphabet’s Gemini service
- Given AMD’s existing supply contract with OpenAI for data center hardware, questions have emerged regarding future semiconductor procurement levels
- The chipmaker is scheduled to announce Q1 financial results on May 5, with analyst projections calling for EPS of $1.28 alongside revenue of $9.87 billion
Advanced Micro Devices experienced a significant downturn on Tuesday following the publication of a Wall Street Journal article indicating that OpenAI fell short of its self-imposed benchmarks for both revenue generation and user acquisition in 2025.
Advanced Micro Devices, Inc., AMD
According to the publication, OpenAI did not reach its ambitious target of one billion weekly active ChatGPT users during the previous year. Additionally, the company witnessed a notable slowdown in revenue momentum. The report suggested that consumers have been migrating to competing artificial intelligence platforms, particularly Anthropic’s Claude assistant and Alphabet’s Gemini technology.
OpenAI responded forcefully to the claims, dismissing the Journal’s reporting as “ridiculous.” Despite this pushback, investor sentiment remained shaken.
AMD shares tumbled as much as 4.8% during morning trading hours. When the closing bell rang, the stock had settled with a loss of approximately 3.72%.
The decline extended across the artificial intelligence chip sector more broadly. Since OpenAI maintains a current supply arrangement with AMD for data center infrastructure components, market participants grew concerned that diminished expansion at OpenAI might translate into reduced semiconductor orders going forward.
Analyzing the Market Response to AMD
Certain market observers have questioned the appropriateness of Tuesday’s sharp reaction. Despite experiencing slower expansion, OpenAI continues to purchase AI semiconductors. Furthermore, the competitors capturing OpenAI’s departing users—specifically Anthropic and Gemini—are themselves significant chip purchasers.
This dynamic suggests that the overall demand landscape for AMD may not have shifted as substantially as Tuesday’s price movement would indicate.
Nonetheless, a more fundamental worry persists about whether the artificial intelligence infrastructure investment cycle has a more limited duration than markets had anticipated. When an industry-leading AI organization like OpenAI begins experiencing growth deceleration, it naturally prompts questions about the sustainability of elevated chip demand levels.
Despite Tuesday’s setback, AMD has surged more than 50% year-to-date and posted gains exceeding 248% over the trailing twelve months. The session’s trading volume reached approximately 29 million shares—modestly below the three-month average daily volume of 32.47 million.
First Quarter Results Coming May 5
AMD is scheduled to release its Q1 2026 financial performance after market close on May 5. Analyst consensus forecasts call for adjusted earnings per share of $1.28 on revenue of $9.87 billion.
The semiconductor manufacturer has surpassed Wall Street projections in each of the preceding eight reporting periods. This consistent outperformance record will draw heightened scrutiny as market participants seek insight into data center demand dynamics and AI chip order trajectories.
Current analyst sentiment on AMD stands at Moderate Buy, derived from 19 Buy recommendations and eight Hold ratings issued during the past three months. The consensus price objective sits at $295.04, implying a potential decline of roughly 8.34% from prevailing price levels.
AMD concluded Tuesday’s session trading near $325.30.
