What’s Fueling Today’s Big Move In AMD Stock?

Advanced Micro Devices Inc.(AMD) stock soared over 26% in Monday’s premarket session after the company inked a major infrastructure agreement with OpenAI. 

The deal will see AMD deliver up to six gigawatts of computing power using its Instinct GPUs (graphics processing units) to support OpenAI’s future artificial intelligence systems.

The rollout will begin with a 1-gigawatt deployment of AMD’s Instinct MI450 GPUs in the latter half of 2026. Under the terms of the agreement, AMD will serve as a core hardware provider for OpenAI’s next wave of infrastructure. The collaboration will kick off with the MI450 series and extend into future generations of AI chips and rack-level solutions. Both companies aim to optimize their technologies to help in the widespread adoption of advanced AI capabilities.

To further strengthen the alliance, AMD has granted OpenAI a warrant for up to 160 million shares of its common stock. These shares will vest incrementally, starting with the successful delivery of the initial 1-gigawatt system. 

Additional shares will vest as OpenAI scales usage to six gigawatts and as AMD reaches specific share price benchmarks. Further vesting depends on the achievement of technical and commercial goals that validate AMD’s AI deployment at scale.

“Our partnership with OpenAI is expected to deliver tens of billions of dollars in revenue for AMD while accelerating OpenAI’s AI infrastructure buildout,” said EVP, CFO, and Treasurer at AMD, Jean Hu. “This agreement creates significant strategic alignment and shareholder value for both AMD and OpenAI and is expected to be highly accretive to AMD's non-GAAP earnings-per-share.”

AMD stock has gained over 36% year-to-date, but has shed more than 3% in the last 12 months. 

Also See: Fifth Third To Acquire Comerica In $10.9B Deal

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