Key Stats for $AMD Stock
- Price Change for $AMD stock: 32%
- Current Share Price: $226
- 52-Week High: $226
- $AMD Stock Price Target: $186
What Happened?
AMD (AMD) stock exploded more than 30% in early market trading on Monday after announcing a massive deal with OpenAI. The partnership could give OpenAI up to 10% ownership in AMD through a warrant agreement tied to chip purchases.
OpenAI will deploy six gigawatts of AMD’s Instinct graphics processing units over several years. The rollout is expected to start with one gigawatt of chips in late 2026. While OpenAI called the deal worth billions of dollars, they didn’t share an exact figure.
The warrant structure grants OpenAI the right to purchase up to 160 million AMD shares upon reaching specific milestones.
The first shares vest when OpenAI deploys the first gigawatt of chips. More shares unlock as purchases scale up to six gigawatts and AMD’s stock hits specific price targets.
This comes just two weeks after OpenAI signed a $100 billion deal with Nvidia. Between these two partnerships, OpenAI has committed roughly $1 trillion in AI infrastructure spending.
AMD has also recently expanded its partnership with Cohere, another AI company, providing more businesses with access to AMD-powered AI infrastructure.
See analysts’ growth forecasts and price targets for AMD stock (It’s free!) >>>
What the Market Is Telling Us About AMD Stock
The market’s enthusiastic response to AMD stock suggests that investors view this as a turning point for the chipmaker in the AI chip race. After years of playing second fiddle to Nvidia, AMD now has one of the world’s most important AI companies as a flagship customer.
The deal validates AMD’s next-generation Instinct chip roadmap and positions the company as a core player in OpenAI’s ambitious infrastructure buildout. With OpenAI diversifying away from relying solely on Nvidia, AMD gets a massive opportunity to prove its chips can handle cutting-edge AI workloads.
Investors are betting that this partnership will deliver tens of billions of dollars in revenue for AMD, while also giving the company more credibility with other potential AI customers.
The stock’s 35% jump suggests the market thinks AMD just locked in a big chunk of the AI chip market’s future growth.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
