AMD Stock Erupts After Pre-FOMC OpenAI Deal: Is There a Computing Power War Coming For Crypto?

Core Insights - OpenAI has signed a multiyear agreement with AMD for six gigawatts of GPU capacity, potentially generating tens of billions in revenue over five years, marking a significant move against Nvidia's dominance in AI chips [1] - AMD's stock surged by 35% following the announcement, reflecting investor confidence in the long-term implications of the deal [3] - The agreement includes provisions for OpenAI to receive up to 160 million share warrants, approximately 10% of AMD's equity, contingent on meeting certain milestones [3] Market Impact - The deal had an immediate positive effect on the stock market, with the S&P 500 reaching 6,740.28 and the Nasdaq Composite climbing to 22,941.67, both achieving record closes [4] - Nvidia's stock experienced a slight decline of over 1%, but analysts do not foresee an immediate end to its market dominance, instead predicting AMD will become a key second supplier in the AI ecosystem [5] Industry Trends - Semiconductor manufacturing output in the U.S. increased by 18.6% year-over-year as of Q3 2025, primarily driven by the demand for AI chips [6] - The recent AMD deal follows OpenAI's agreements with Samsung and SK Hynix for high-bandwidth memory chips, indicating a strategic move to diversify supply sources beyond Nvidia [8]