AMD Shares Fall as IPO Delay Looms, Q2 Server CPU Sales to Rise 70%
AMD•AMD shares declined after reports OpenAI plans to delay its IPO until next year, dragging AI chip stocks lower. Analysts forecast AMD revenue to grow 42.7% annually, while management projects server CPU revenue up over 70% year-over-year in Q2 and targets a TAM growing above 35% annually.
1. Stock Reaction to OpenAI IPO Delay
AMD shares fell alongside other AI chip stocks after reports emerged that OpenAI will postpone its IPO until next year. The delay raised concerns over near-term demand for AI chips given OpenAI’s $1.4 trillion data center commitments, prompting a sell-off in semiconductor equities.
2. Valuation and Growth Forecasts
AMD currently trades at about 71.3 times this year’s expected earnings, reflecting high investor expectations for growth. Wall Street analysts anticipate revenue to expand by 42.7% annually, up from 35.0% over the past 12 months, indicating confidence in the company’s ability to accelerate sales.
3. Server CPU Opportunity
Management highlighted a structural shift toward “Agentic AI,” revising its total addressable market for server processors to grow at over 35% per year. This underpins guidance for server CPU revenue to jump more than 70% year-over-year in the second quarter, underscoring AMD’s push into high-margin data center workloads.
