Why Advanced Micro Devices Stock Just Dropped
Key Points
WSJ reports slowing sales growth and fewer than expected ChatGPT users in 2025.
AI investors are taking bad news from OpenAI as an excuse to sell AI chips stocks like AMD today.
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Advanced Micro Devices (NASDAQ: AMD) stock tumbled 4.8% through 10:45 a.m. ET this morning.
You can probably thank OpenAI for that.
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What's OpenAI got to do with AMD stock?
OpenAI "missed its own targets for new users and revenue" in 2025, according to a just-released Wall Street Journal report. OpenAI itself calls the report "ridiculous," but artificial intelligence investors are nervous regardless.
Rightly or wrongly, the Journal reports that OpenAI's business is slowing down, failing to hit one billion weekly active users for ChatGPT last year, with revenue growth slowing, and users jumping ship to other AIs such as Anthropic and Alphabet's (NASDAQ: GOOG) Gemini. Despite all this, OpenAI is still buying all the AI chips it can get hold of, and its costs are out of control.
Is bad news for OpenAI bad news for AMD, too?
From an AMD investor's perspective, though, I have to ask: And what's so bad about that?
OpenAI's growth is slowing down, you say? Bad news for OpenAI's pre-IPO investors. But OpenAI's still buying lots of chips, right? Well, that's a curious decision for OpenAI to make -- but it still sounds like good news for AMD as it tries to break into the market for AI chips!
OpenAI users are defecting to Anthropic and Gemini? Again, lousy news for OpenAI, but Anthropic and Gemini still buy AI chips, too, yes? They haven't given that up?
Well, then that's good news for AMD, too!
Long story short, while OpenAI's bad news may worry OpenAI investors, I fail to see why it should be a huge concern for AMD investors. The AI revolution marches on, with OpenAI or without it.
Should you buy stock in Advanced Micro Devices right now?
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Alphabet. The Motley Fool has a disclosure policy.
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