As OpenAI Diversifies Beyond Nvidia, AMD Stock May Have Just Gained a Massive Catalyst

Core Viewpoint - Advanced Micro Devices (AMD) has announced a significant partnership with OpenAI, which includes OpenAI acquiring a 10% stake in AMD and AMD supplying 6 gigawatts of GPUs to OpenAI, leading to a notable increase in AMD's stock price by over 25% in early trading [1][2]. Group 1: Deal Overview - OpenAI will take a 10% stake in AMD, valued at up to 160 million shares, and AMD will provide approximately 6 gigawatts of GPUs to OpenAI [1][3]. - The deal will commence with an initial purchase of 1 gigawatt of AMD Instinct MI450 GPUs, expected to begin in the second half of 2026 [5]. - AMD will issue OpenAI warrants for up to 160 million shares of AMD common stock, which will vest as specific milestones are achieved, starting with the first 1 gigawatt deployment [6]. Group 2: Market Context - AMD has been trailing Nvidia in the GPU market, with Nvidia's stock increasing over 1,300% in the last three years compared to AMD's 200% rise [2]. - Despite Nvidia's dominance, AMD's stock performance has doubled that of Nvidia's in 2025, indicating a potential shift in market dynamics [3]. - The partnership with OpenAI is expected to generate "tens of billions of dollars in revenue for AMD," according to AMD's CFO [7]. Group 3: Industry Trends - The AMD-OpenAI deal is part of a broader trend among major chipmakers racing to scale, with Nvidia also announcing a $100 billion deal with OpenAI and a $5 billion stake in Intel [7]. - OpenAI has also secured a $300 billion deal with Oracle for cloud equipment, highlighting the competitive landscape in the AI and semiconductor industries [7].