AMD Gains 2.5% as S&P 500 Drops 5% in March
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- AMD gained 2.5% in March while the S&P 500 fell 5% amid Middle East tensions and soaring oil prices, bucking the broader sell-off.
- AMD will begin shipping MI450 GPUs in the second half of 2025, which in its Helios rack configuration deliver 36 times more performance than the prior MI400 and MI355 generations, with 50% more memory capacity than Nvidia's upcoming Vera Rubin system.
- OpenAI and Meta are the first announced customers for MI450, each planning to deploy 6 gigawatts of AMD GPU computing capacity over the next several years.
- AMD's data center revenue hit a record $16.6 billion in 2025, up 32% year-over-year and nearly half of total revenue, with CEO Lisa Su projecting 60% average annual data-center growth over the next three to five years.
- OpenAI has committed $300 billion in Oracle cloud capacity and $281 billion in Microsoft Azure capacity against just $25 billion in annualized revenue, with Wall Street growing uneasy about its ability to honor AMD GPU purchase agreements.
- On consensus growth estimates of $6.65 per share in 2026 and $10.77 in 2027, AMD trades at forward P/E ratios of 30.6 and 18.9 — below its current trailing P/E of 48.7.
Why it matters: AMD's data-center segment hit a record $16.6 billion in 2025, and CEO Lisa Su projects 60% annual growth — but OpenAI, slated to become one of its largest customers, has committed more than $580 billion in combined cloud contracts against just $25 billion in annualized revenue, leaving Su's forecasts exposed if that single customer scales back GPU orders.
