AMD Stock Surges 9.4% on Oracle’s AI Chip Deployment Plan

Advanced Micro Devices (AMD) shares jumped 9.4% Wednesday, outpacing broader market gains, after Oracle revealed plans to deploy 50,000 of the chipmaker's next-generation MI450 accelerators by 2026. The deal positions AMD as a serious contender in the AI infrastructure race against Nvidia.

Oracle's bulk purchase underscores AMD's expanding role in artificial intelligence hardware. The cloud computing giant will integrate the chips into its servers, with Oracle Cloud Infrastructure's Karan Batta predicting strong customer adoption for AI inference workloads. This follows OpenAI's recent MOVE to acquire a 10% stake in AMD through a strategic chip procurement agreement.

The consecutive announcements signal AMD's transition from peripheral player to Core AI infrastructure provider. While valuation concerns persist, the stock's momentum reflects growing confidence in AMD's ability to capitalize on sustained AI demand across cloud computing platforms.