AMD Stock Soars: $100B AI Era Begins with OpenAI Agreement
Chipmaker AMD’s stock shot up Monday following the announcement of a multibillion-dollar agreement with OpenAI. The shares were up over 23% at the end of the trading day. AMD will supply the AI giant with up to 6 gigawatts of GPUs over multiple generations as a result of the arrangement, beginning with its MI450 chips in the second half of 2026.
OpenAI’s Strategic Stake in AMD Could Revolutionize AI Infrastructure
OpenAI will acquire up to 160 million AMD shares, or about 10% of the business, as part of the agreement. As AMD reaches certain milestones, shares will vest in tranches. When AMD delivers its first 1 gigawatt of chips, the tranche will vest.
Our partnership with OpenAI is expected to deliver tens of billions of dollars in revenue for AMD while accelerating OpenAI’s AI infrastructure buildout. This agreement creates significant strategic alignment and shareholder value for both AMD and OpenAI and is expected to be highly accretive to AMD’s non-GAAP earnings-per-share.
AMD CFO Jean Hu
Nvidia’s AI Push Forces AMD to Strategize: Stock Performance Battle
With only a 1% increase in the last 12 months, AMD’s stock has underperformed Nvidia’s over the past year. Over the same time frame, Nvidia’s stock price increased by 52%. However, over the past six months, things have improved, as AMD shares have increased by 75%. The share price of Nvidia surged 84%. The deal was made just weeks after Nvidia, AMD’s main rival, declared it would invest $100 billion in OpenAI. The goal of this investment is to assist the firm in expanding its own data centers, which will support its AI products.
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