AMD Forecasts Over 70% Q2 CPU Revenue Growth as Shares Slip
AMD•AMD now forecasts its server CPU market to grow over 35% annually and its Q2 revenue to rise more than 70% year-over-year, while analysts project a 42.7% CAGR through 2028. Shares dipped after OpenAI announced delaying its IPO, triggering a broader AI chip sector pullback.
1. Sector Selloff Pressure
AMD shares fell alongside other AI chip stocks after reports that OpenAI plans to delay its IPO into next year, exacerbating concerns over near-term AI infrastructure spending and market volatility following SpaceX’s recent market debut.
2. Analyst Forecasts
Wall Street consensus now assumes AMD will deliver a 42.7% annual revenue compound growth rate through 2028, reflecting high expectations for its data center and server CPU segments and implying significant multiple contraction over time.
3. Management Guidance
Company executives revised their outlook, projecting the total addressable market for AMD’s server processors will expand by more than 35% annually and forecasting over 70% year-over-year server CPU revenue growth in the second quarter.
