AMD Stock Surges 43% This Week Following OpenAI Partnership
AMD Shares Surge Amid Blockbuster OpenAI Partnership
AMD’s Stock Skyrockets Following AI Equipment Deal with OpenAI
In a significant development, Advanced Micro Devices Inc. (AMD) witnessed an impressive 11% increase in its stock value on Wednesday. This surge comes on the heels of OpenAI’s announcement to purchase billions of dollars’ worth of AI equipment from the chipmaker. This move earlier this week has awakened investor interest, driving significant stock price growth for AMD.
Potential Stake Acquisition by OpenAI Boosts AMD’s Market Cap
On Monday, OpenAI, renowned for its ChatGPT technological advancements, entered into a strategic agreement to potentially acquire a 10% stake in AMD. This development is based on the current stock price and pre-determined partnership milestones. Following the announcement, AMD’s market capitalization has soared to $380 billion, marking a 4% increase on Tuesday and an unprecedented 24% rise on Monday.
AMD Investors Gain Confidence in the AI Chip Sector
The partnership with OpenAI, which has historically been aligned with Nvidia, has instilled confidence among investors regarding AMD’s viability as a formidable competitor in the AI chips sector. This momentum is reflected in the company’s shares, which have climbed 43% this week, setting the pace for the best weekly gain since April 2016.
CEO Lisa Su’s Optimism on the AMD-OpenAI Alliance
In a statement on Monday, AMD CEO Lisa Su characterized the deal as a “win-win.” She emphasized that AMD’s AI chips are well-suited for “at-scale deployments” in large data centers, such as those utilized by OpenAI and other cloud service providers.
Nvidia’s Consideration of AMD and OpenAI’s Strategic Move
Nvidia CEO Jensen Huang expressed his surprise regarding the partnership during an appearance on CNBC’s Squawk Box. Huang noted the novelty and uniqueness of the deal, considering OpenAI’s prior enthusiasm for their next-generation products. He questioned the strategic decision to potentially cede a 10% ownership before the completion of these developments but acknowledged the cleverness of the move nonetheless.
AMD’s Market Chart Performance
The recent positive activity is evident in AMD’s stock performance, which is attracting considerable attention in financial markets.
