AMD stock rockets higher on multibillion-dollar OpenAI deal

Group 1 - AMD announced a multibillion-dollar deal with OpenAI to provide over 6 gigawatts of GPUs, starting with MI450 chips in the second half of 2026 [1] - OpenAI will acquire up to 160 million shares of AMD, approximately 10% of the company, with shares vesting as AMD meets specific milestones [2] - The partnership is expected to generate tens of billions of dollars in revenue for AMD and enhance OpenAI's AI infrastructure [2][3] Group 2 - The agreement is anticipated to create significant strategic alignment and shareholder value for both AMD and OpenAI, positively impacting AMD's non-GAAP earnings-per-share [3] - OpenAI is currently valued at $500 billion, making it the world's most valuable startup [4] - AMD's stock has underperformed compared to Nvidia over the past year, with a 1% increase in the last 12 months, while Nvidia's stock rose by 52% [5] Group 3 - In the last six months, AMD shares have increased by 75%, while Nvidia shares rose by 84% [6] - There are concerns about a potential AI bubble due to significant investments in AI projects, although industry leaders believe AI will still provide benefits [6]