OpenAI IPO Delay Drives 3% Drop in AMD Shares Despite 70% CPU Growth Forecast
AMD•AMD shares fell 3% Friday after OpenAI postponed its IPO to next year, which may curb near-term AI chip purchases despite AMD’s forecast for >70% year-over-year server CPU revenue growth in Q2. The stock trades at 71.3x 2026 EPS, falling to 29.6x by 2028 if revenue grows 42.7% annually.
1. Market Reaction
AMD shares declined about 3% on reports that OpenAI delayed its IPO to next year, prompting investor concern over potential near-term reductions in AI platform chip orders.
2. Q2 Revenue Guidance
Management projects server CPU revenue growth of more than 70% year-over-year in the June quarter, citing structural demand shifts driven by so-called Agentic AI and a total addressable market expanding over 35% annually.
3. Valuation and Growth Outlook
At roughly 71.3 times projected 2026 earnings, AMD’s current multiple is forecast to compress to about 29.6 times by 2028 if analysts’ consensus of 42.7% annual revenue growth materializes.
