AMD’s AI Summit Announcement Fails to Stem Selloff as OpenAI Woes and Insider Sales Weigh

AMD shares fall 6.4% as OpenAI misses targets, sparking AI demand fears. Analysts raise targets but insider selling and supply risks loom ahead of Q1 earnings.

Advanced Micro Devices is caught in a tug-of-war between long-term ambition and short-term anxiety. The chipmaker has just unveiled plans for a global artificial intelligence summit this summer, yet its stock is sliding as doubts about AI demand ripple through the market and prominent investors cash out.

Shares fell 6.4 percent to €269.90 on Tuesday, retreating from a 52-week high reached just last week. The catalyst for the pullback came from the software world: reports that OpenAI missed its internal targets for both revenue and new user growth. That revelation has investors questioning whether the massive spending on AI infrastructure is justified, and AMD — a key player in the market for AI graphics processors — could see its hardware sales cool if software-level demand weakens.

The selloff comes despite a remarkable run that saw the stock climb roughly 60 percent in recent weeks, fueled in part by Intel’s blockbuster quarter. The rival beat its own revenue forecast by $1.4 billion, driven by unexpectedly strong demand for server processors. Analyst Gil Luria of DA Davidson called that a fundamental shift, arguing that AI workloads are moving from pure training toward inference and multi-agent models. He raised his price target for AMD from $220 to $375 in a dramatic move and boosted his revenue estimate for the current year by $2 billion.

Not everyone is buying the bullish narrative. Cathie Wood’s ARK Management took advantage of the rally to sell 215,643 AMD shares worth roughly $75 million in late April. Insider selling has also been notable in recent months. Meanwhile, Stifel analysts warn that supply constraints could cap AMD’s growth — the company’s expansion may be limited by how fast it can manufacture the chips it has ordered. U.S. export controls on the Chinese market add another layer of risk, costing the company a net $440 million last fiscal year.

AMD is pushing hard to close the gap with Nvidia. On July 23, the company will host its “Advancing AI 2026” summit in San Francisco, where CEO Lisa Su is expected to outline plans for expanding AI infrastructure. Central to the data center strategy is the Instinct accelerator family. The MI350 series is currently in the scaling phase, and the company plans a broader launch of the MI400 platform later this year.

Before that event, however, comes a critical test. AMD reports first-quarter results on May 5 after the U.S. market close. Analysts expect revenue of $9.84 billion, representing growth of roughly 32 percent year-over-year. The data center business, which delivered a record $5.4 billion in the previous quarter, now accounts for more than half of total revenue. Investors will scrutinize whether strategic partnerships with Meta and OpenAI are translating into concrete revenue acceleration. The management will hold a conference call to discuss the numbers and provide an updated full-year outlook.

If AMD disappoints on key metrics or production capacity guidance, the current correction could deepen. The stock’s trajectory now hinges on whether the company can prove that its fundamental momentum matches the market’s recent euphoria.