TLDR
- AMD stock fell around 4.8% on Tuesday following a Wall Street Journal report on OpenAI missing its own revenue and user growth targets
- OpenAI failed to reach one billion weekly active users for ChatGPT in 2025, with revenue growth slowing
- Users are reportedly moving to competitors like Anthropic and Alphabet’s Gemini
- AMD still has a supply agreement with OpenAI for data center components, raising concern about future chip demand
- AMD reports Q1 earnings on May 5, with Wall Street expecting EPS of $1.28 and revenue of $9.87 billion
AMD stock dropped sharply on Tuesday after a Wall Street Journal report revealed OpenAI missed its own internal targets for revenue and user growth in 2025.
Advanced Micro Devices, Inc., AMD
The report said OpenAI failed to hit one billion weekly active users for ChatGPT last year. Revenue growth also slowed. Users have been moving to rival AI products, including Anthropic’s Claude and Alphabet’s Gemini.
OpenAI pushed back, calling the Journal’s report “ridiculous.” But that did little to calm investors.
AMD fell as much as 4.8% through mid-morning trading. By the close, it was down around 3.72% on the day.
The selloff swept through AI chip stocks broadly. Because OpenAI has an existing agreement with AMD to supply components for data centers, investors worried that slower growth at OpenAI could mean weaker chip demand down the line.
Why the AMD Selloff Raises Questions
Some analysts have questioned whether the reaction was justified. OpenAI, despite its slower growth, is still buying AI chips. Rivals picking up OpenAI’s lost users — Anthropic and Gemini — are also active chip buyers.
That means the total demand picture for AMD may not have changed as dramatically as Tuesday’s move suggests.
Still, the broader concern is whether the AI spending boom has a shorter runway than previously thought. If a flagship AI company like OpenAI is already seeing growth decelerate, that raises questions about how long chip demand stays elevated.
AMD is still up over 50% year-to-date, and up more than 248% over the past 12 months. Tuesday’s drop came on trading volume of around 29 million — slightly below the three-month daily average of 32.47 million.
Earnings Due May 5
AMD is set to report Q1 2026 results after the close on May 5. Wall Street is expecting adjusted earnings per share of $1.28 and revenue of $9.87 billion.
AMD has beaten Wall Street estimates in each of the past eight quarters. That track record will be in focus as investors look for clarity on data center demand and AI chip orders.
The analyst consensus on AMD currently sits at Moderate Buy, based on 19 Buy ratings and eight Hold ratings over the past three months. The average price target is $295.04, which would represent a drop of around 8.34% from current levels.
AMD closed Tuesday at approximately $325.30.
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