Advanced Micro Devices Slides on OpenAI IPO Delay, Guides Q2 Server CPU Sales Up 70%
AMD•AI chip stocks including AMD fell Friday after reports OpenAI delayed its IPO to 2027, triggering concerns over near-term enterprise chip orders. AMD trades at 71.3x projected earnings; analysts forecast 42.7% annual revenue growth and management guides Q2 server CPU revenue over 70% YoY on surging AI data center demand.
1. AI Stock Sell-off
AI chip stocks including AMD declined after reports that OpenAI delayed its IPO to 2027, stoking concerns over near-term enterprise chip orders and triggering a sell-off across semiconductor shares.
2. Valuation and Growth Assumptions
AMD’s current valuation stands at 71.3 times this year’s expected earnings, implying that analysts foresee revenue growth of roughly 42.7% annually through 2028 to justify the premium multiple.
3. Server CPU Demand Outlook
Management has guided Q2 server CPU revenue to climb by more than 70% year-over-year, citing structural demand from “Agentic AI” that expands its total addressable market at over 35% annually.
