AMD Shares Skyrocket Over 30% After Landmark AI Chip Deal With OpenAI
Advanced Micro Devices (AMD) shares soared more than 30% on Monday after the company announced a multi-year agreement with OpenAI to supply artificial intelligence chips — a partnership expected to generate tens of billions in annual revenue.
The agreement reportedly includes an option for OpenAI to acquire up to 10% of AMD’s equity, reflecting the growing strategic alignment between the two companies.
Under the deal, hundreds of thousands of AMD graphics processing units (GPUs) — equal to about six gigawatts of computing power — will be deployed over several years, starting in the second half of 2026.
OpenAI also plans to build a one-gigawatt data center next year powered by AMD’s upcoming MI450 series chips, marking one of the largest AI infrastructure projects in the world.
Executives Praise Strategic Partnership
“We are thrilled to partner with OpenAI to deliver AI compute at massive scale,” said Dr. Lisa Su, AMD’s Chair and CEO. “This partnership combines the best of both companies to accelerate AI innovation and strengthen the global AI ecosystem.”
OpenAI CEO Sam Altman called the collaboration a major step toward scaling AI capabilities. “This partnership is a huge leap forward in building the compute capacity needed to unlock AI’s full potential,” he said.
Greg Brockman, OpenAI’s co-founder and president, added that working closely with AMD will allow the company “to scale efficiently and deliver AI tools that help people worldwide.”
Analysts See Huge Upside for AMD Stock
Following the announcement, Barclays analysts said the deal is “mutually beneficial” and predicted it would push AMD’s share price higher. The bank raised its price target to $300 from $200 per share, citing accelerating AI demand.
Barclays noted that while infrastructure challenges remain, the agreement underscores “the industry’s urgent need for more compute power,” not just competition with NVIDIA.
Analysts added that AMD’s stock strength suggests investors expect more AI partnership announcements in the months ahead, with large-scale deployments offering valuable experience for AMD’s upcoming 500-series chips.
