Advanced Micro Devices shares slid with AI chip peers after reports OpenAI delayed its IPO to 2027, raising spending concerns on $1.4T data center commitments. Trading at 71.3 times this year’s earnings, it forecasts server CPU revenue growth above 70% in Q2 with addressable market growing over 35% annually.
Advanced Micro Devices shares fell after reports OpenAI postponed its IPO to 2027, raising concerns over $1.4T in data center commitments and reducing near-term AI chip orders.
The stock trades at about 71.3 times this year’s projected earnings, implying a forward multiple of roughly 29.6 times expected 2028 earnings if consensus revenue CAGR of 42.7% materializes.
Management forecasts server CPU revenue to grow over 70% year-over-year in Q2, supported by a total addressable market expanding more than 35% annually due to rising demand for agentic AI processors.
High valuation leaves limited margin for error if growth slows, and analysts’ 2028 earnings estimates range from $12.61 to $31.03 per share, highlighting significant forecast variability.
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