AMD Secures Major AI Chip Deal with OpenAI, Signaling Growth Potential

Advanced Micro Devices (AMD) has surged to new highs following its announcement of a multi-year agreement to supply OpenAI with 6 gigawatts worth of AI chips. The deal underscores AMD's accelerating role in the AI infrastructure race, as the company expands its GPU offerings to compete with industry leaders like Nvidia.

AMD's Instinct MI450 series GPUs will power OpenAI's data centers starting next year, building on existing deployments with tech giants and Elon Musk's xAI. Analysts project over 20% revenue growth for 2025, with potential upward revisions after this partnership. At $234 per share, AMD trades at a forward P/E of 37 based on 2026 estimates—a valuation that may not yet reflect the full impact of the OpenAI contract.

The semiconductor firm has quietly assembled a comprehensive AI stack, including data center GPUs and rack-scale systems. This strategic positioning comes as global AI spending accelerates among Fortune 500 companies, with chip stocks serving as bellwethers for the sector's long-term infrastructure buildout.