Why AMD Stock Jumped 50%?

Core Insights - Advanced Micro Devices (AMD) stock experienced a nearly 50% surge from July 17, 2025, to October 15, 2025, driven by improving earnings, a recovering CPU market, and increased interest in GPUs for AI applications [1] - The company secured a significant deal with OpenAI to supply tens of thousands of GPU chips for 6 gigawatts of computing capacity over the next five years [1] Financial Performance - AMD reported record second-quarter 2025 revenue of $7.7 billion, a 32% year-over-year increase, primarily due to strong sales of EPYC and Ryzen processors [6] - The company fell short of EPS estimates, posting $0.48 against the expected $0.54, partly due to an $800 million charge related to U.S. export controls on MI308 AI chips to China [6] - AMD provided an optimistic revenue forecast for Q3 2025 of approximately $8.7 billion, indicating a healthy 28% year-over-year growth [6] Market Developments - Investor confidence was bolstered by key AI chip agreements, including a multi-year partnership with OpenAI and Oracle Cloud Infrastructure's plan to roll out 50,000 AMD Instinct MI450 Series AI chips beginning Q3 2026 [6][7] - Analysts upgraded their ratings for AMD, reflecting positive sentiment driven by the company's competitive AI product portfolio and market share gains in server CPUs, achieving an all-time high of 39% in Q2 2025 [11] Executive Actions - Insider stock sales by senior executives, including CEO Lisa T. Su, raised concerns among investors regarding ownership reduction [11]