Why AMD Stock Is Soaring This Week
Shares of Advanced Micro Devices (NASDAQ: AMD) are absolutely skyrocketing this week. As of noon ET on Oct. 9, the chip designer's stock has gained 42% from last Friday's closing bell, according to data from S&P Global Market Intelligence. The fuel for this fire is no secret: AMD struck a chip-supply deal with ChatGPT maker OpenAI.
The companies announced their partnership in the early hours of Tuesday, Oct. 6. OpenAI will install enough AMD artificial intelligence (AI) accelerator cards to consume 6 gigawatts of electric power in a five-year deal, with several smaller phases. The first gigawatt on new systems will use the AMD Instinct MI450 graphics processing units (GPUs) in the second half of 2026.
The announcement also reminded investors that OpenAI has been using AMD Instinct MI300X and MI350X accelerators in the past. ChatGPT is not exclusively powered by Nvidia (NASDAQ: NVDA) hardware.
Source Fool.com
Advanced Micro Devices Inc. Stock
The stock is one of the favorites of our community with 108 Buy predictions and 2 Sell predictions.
With a target price of 230 € there is a positive potential of 31.19% for Advanced Micro Devices Inc. compared to the current price of 175.32 €.
