AMD monster insider trade earns trader $18 million in 48 hours

Core Insights - An investor turned a $6 million bet on AMD options into an estimated $18 million profit within two days due to a significant announcement from OpenAI [1][2] - The announcement involved OpenAI acquiring a 10% strategic stake in AMD, which is part of a partnership to supply advanced AI chips [1][3] Group 1: AMD's Stock Movement - The news of OpenAI's investment triggered a sharp rally in AMD's share price, causing call options to soar over 300% [2] - Jefferies upgraded AMD's stock to 'Buy' and raised its target price to $300, viewing the OpenAI deal as transformative for AMD's position in the AI chip market [4] Group 2: Partnership Details - Under the multi-year agreement, AMD will supply up to 6 gigawatts of GPU compute power to OpenAI, starting with an initial commitment of 1 gigawatt [3] - OpenAI also received a performance-based warrant to acquire up to 10% of AMD's shares, indicating strong confidence in AMD's AI strategy [3] Group 3: Market Outlook and Challenges - Analysts are optimistic about the partnership as a key step in narrowing the competitive gap with Nvidia, the current industry leader [6] - However, there are concerns regarding AMD's ability to execute the six-gigawatt commitment and meet production deadlines, which will be critical for maintaining momentum [6]