Advanced Micro Devices Shares Slide on OpenAI IPO Delay and Memory Fears
AMD•Advanced Micro Devices shares fell on Friday following reports that OpenAI may postpone its public offering until 2027, triggering a selloff among AI-focused chipmakers. Despite market weakness, AMD retains a multi-billion dollar contract to supply AI accelerators to OpenAI.
1. OpenAI IPO Delay Triggers AI Chip Selloff
Reports that OpenAI may push its IPO into 2027 prompted a broad drop in AI and memory chip stocks on June 26, with industry leaders including Advanced Micro Devices trading lower across U.S. and Asian markets.
2. AMD Slides on Memory Price Concerns
Investors weighed the impact of rising high-bandwidth memory prices required by AMD's next-generation GPUs, exacerbating the selloff as memory makers like Micron and Western Digital also saw significant declines.
3. Stable Revenue from AI Supply Agreement
AMD’s existing multi-billion dollar contract to deliver AI accelerators to OpenAI remains intact, providing a secured revenue stream that could support the company once OpenAI’s funding event is completed.
