AMD Secures Major AI Chip Deal with Oracle, Signaling Broader Market Demand
Oracle has committed to purchasing 50,000 GPUs from Advanced Micro Devices to bolster its artificial intelligence infrastructure, with initial deployment slated for Q3 2026. The cloud computing giant anticipates further expansions in 2027 and beyond, citing escalating demand for scalable AI solutions.
AMD's stock ROSE 3% following the announcement, building on an 85% year-to-date surge fueled by its recent partnership with OpenAI. Oracle shares dipped 2% Tuesday but remain up 80% in 2025, reflecting investor confidence in AI-driven growth trajectories.
The deal underscores a shifting landscape in AI hardware markets, where competitors are gaining ground against dominant player Nvidia. Semiconductor stocks continue to benefit from unprecedented demand for generative AI capabilities across industries.
