Key Takeaways
- Shares of Advanced Micro Devices fell approximately 4.8% Tuesday after Wall Street Journal reporting indicated OpenAI underperformed on internal revenue and user expansion objectives
- ChatGPT failed to achieve the milestone of one billion weekly active users during 2025, while revenue expansion decelerated
- Market share appears to be shifting toward competing platforms including Anthropic’s Claude and Google’s Gemini
- The chipmaker maintains a supply partnership with OpenAI for data center hardware, prompting investor worries about semiconductor order volumes
- First quarter earnings are scheduled for May 5, with analyst consensus projecting $1.28 EPS and $9.87 billion in revenue
Shares of Advanced Micro Devices experienced a significant decline Tuesday as fresh reporting from the Wall Street Journal disclosed that OpenAI fell short of its internal benchmarks for both revenue generation and user acquisition in 2025.
Advanced Micro Devices, Inc., AMD
According to the publication, OpenAI’s ChatGPT platform did not reach its targeted milestone of one billion weekly active users throughout the previous year. Additionally, revenue momentum showed signs of deceleration. The report suggested users have been migrating to alternative artificial intelligence offerings, notably Anthropic’s Claude assistant and Alphabet’s Gemini platform.
OpenAI responded to the reporting by dismissing the claims as “ridiculous.” However, the statement failed to reassure market participants.
AMD shares declined as much as 4.8% during morning trading hours. By market close, the stock had settled down approximately 3.72% for the session.
The downturn rippled across semiconductor stocks focused on artificial intelligence applications. Given that OpenAI maintains a current supply arrangement with AMD for data center components, market participants grew concerned that diminished growth momentum at OpenAI might translate into reduced semiconductor purchasing activity going forward.
Market Reaction Draws Scrutiny
Certain market observers have challenged whether Tuesday’s selloff was proportional to the news. Despite experiencing slower expansion, OpenAI continues to procure AI semiconductors. Furthermore, the competitors capturing OpenAI’s migrating users — specifically Anthropic and Gemini — are themselves significant chip purchasers.
This dynamic suggests the aggregate demand environment for AMD may not have deteriorated as severely as Tuesday’s price action would indicate.
Nevertheless, the underlying anxiety centers on whether the artificial intelligence capital expenditure cycle has a more limited duration than market participants previously anticipated. When a prominent AI enterprise such as OpenAI exhibits decelerating expansion, it naturally prompts examination of how long semiconductor demand will remain at elevated levels.
AMD shares remain up more than 50% year-to-date and have surged over 248% across 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.
First Quarter Results Approaching
The chipmaker is scheduled to release Q1 2026 financial results following market close on May 5. Analyst expectations call for adjusted earnings of $1.28 per share alongside revenue of $9.87 billion.
AMD has surpassed Wall Street projections in each of the preceding eight quarters. This consistent performance record will receive heightened attention as investors seek insight regarding data center demand trends and AI chip order activity.
Current analyst sentiment on AMD registers as Moderate Buy, reflecting 19 Buy recommendations and eight Hold ratings issued over the past three months. The consensus price target stands at $295.04, implying potential downside of roughly 8.34% from present trading levels.
AMD concluded Tuesday’s session trading near $325.30.
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