AMD Soars on OpenAI Chip Deal, AI Sector Gains Momentum

Advanced Micro Devices (AMD) shares surged 42% this week following a landmark chip-supply agreement with OpenAI. The deal, announced October 6, commits OpenAI to deploying AMD Instinct MI450 GPUs across AI infrastructure requiring 6 gigawatts of power through 2026. A stock warrant clause could see OpenAI acquire nearly 10% of AMD if shares reach $600.

The partnership underscores shifting dynamics in AI hardware. While Nvidia remains dominant, AMD's MI300X and MI350X accelerators have already powered ChatGPT operations. The 'double-digit billions' contract signals AMD's emergence as a credible alternative in high-performance computing.

Semiconductor stocks across crypto mining and AI sectors saw sympathetic moves. The deal reinforces how blockchain-adjacent technologies like GPU manufacturing are becoming valuation catalysts in both traditional and digital asset markets.