AMD Shares Soar on OpenAI Deal

AMD & OpenAI Partnership - T Rowe Price's portfolio manager views the AMD and OpenAI partnership as exciting, giving AMD a significant customer to scale and attract others [1][2] - The deal involves OpenAI having the right to buy up to 160 million shares of AMD at $0.01 per share, contingent on operational and financial milestones, fostering co-development and partnership [6][7] - The partnership is considered a win-win, with shared economics and a high price on AMD stock, aligning the success of both companies [7] - This collaboration can improve AMD's market narrative, potentially elevating it from a second-place player to a major compute provider alongside OpenAI [8] - The partnership provides AMD with credibility, scale, and additional co-development R&D to enhance its roadmap, signifying the strong demand for AI compute [9] AI Market & Investment - The AI sector is seeing underestimated productivity use cases, including the formation of AI agents and physical AI, driving ROI with backing from blue-chip companies like Microsoft and Oracle [4][5] - The AI infrastructure buildout is supported by debt deals, with the key signal being the worth and use of AI capacity [12] - The useful life of GPUs in data centers is extending, with GPUs from 7-8 years ago still being utilized due to evolving AI workloads, justifying investment [13] - There's a long-term positive outlook for tech holdings, with AI driving productivity and uncapped labor, making it an exciting time for tech investors [10][11] - The potential use cases for AI are expanding beyond initial expectations, including robotics, diagnostics, and simulation [13][14]