Advanced Micro Devices (NASDAQ: AMD) stock surged over 25% as it announced a major deal with OpenAI, where OpenAI will take a 10% stake in AMD and AMD will provide 6 gigawatts of GPUs. This deal aims to boost AMD’s position in the GPU market, where it has been lagging behind Nvidia.

The agreement between AMD and OpenAI will see AMD power OpenAI’s infrastructure with its Instinct MI450 GPUs, starting with a 1 GW purchase in the second half of 2026. OpenAI will receive up to 160 million shares of AMD common stock as specific milestones are met, potentially generating tens of billions in revenue for AMD.

This deal is part of a trend in the chip industry, with companies like Nvidia making billion-dollar deals with OpenAI and Intel. If AMD can capitalize on the revenue potential from this partnership, its stock could be a strong competitor to Nvidia. The stock has outperformed Nvidia in 2025, suggesting further growth opportunities for investors.

Read more at Nasdaq: As OpenAI Diversifies Beyond Nvidia, AMD Stock May Have Just Gained a Massive Catalyst