AMD shares skyrocketed nearly 38 per cent to a 52-week high of $ 226.71 apiece on Monday, after the company announced a strategic partnership with AI behemoth OpenAI to deploy 6 gigawatts of AMD GPUs. The AI chip-supply deal includes warrant for OpenAI to purchase up to 10 per cent ni AMD at 1 cent per share, both companies said in a joint statement.
AMD expects over $100 billion in revenue through the deal.
AMD-OpenAI sign multi-year deal
AMD said that the multi-year deal will require it to supply AI chips to OpenAI, giving the ChatGPT AI bot creator the option to buy up to roughly 10 per cent of the chipmaker.
The spike in the AMD stock added $80 billion to the company’s market value, foreign media reported.
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AMD-OpenAI deal details
The agreement between the two California-based giants covers the supply of hundreds of thousands of AMD’s AI chips — also known as graphics processing units (GPUs) — amounting to six gigawatts over several years beginning in the second half of 2026.
The six-gigawatts of capacity forms roughly the energy needs of 5 million American households, according to reports.
Through the deal, AMD and OpenAI, said the companies, are building the infrastructure to meet the world’s growing AI demands “by combining world-class innovation and execution to accelerate the future of high-performance and AI computing”.
Wall Street Watch | Dow Jones, S&P 500, Nasdaq Composite stage mixed moves
The three main American equity benchmarks — the Dow Jones Industrial Average (DJIA), the S&P 500 and the Nasdaq Composite — staged mixed moves in early trade on Monday.
At 10:20 am ET (7:50 pm in India), the Dow was down 0.6 per cent while the S&P 500 and the Nasdaq Composite were up 0.2 per cent and 0.5 per cent, respectively.
According to analysts, optimism about growth in technology and AI, a positive Q3 earnings season, and more Fed rate cuts drove the indices’ sharp moves to record levels. However, concerns remain about the prospect of the US government shutdown disrupting the release of key economic data, a potential growth slowdown owing to the Trump 2.0 tariff policies, and frothy valuations continue to keep investors cautious.
