In October 2025, AMD stock surged 58% due to a major OpenAI deal, with the company supplying AI chips to OpenAI’s data centers. The AI hardware race is heating up, with AMD making significant strides. Additionally, AMD divested a hardware manufacturing operation and secured a supercomputing contract at Oak Ridge National Laboratory.

The OpenAI deal with AMD involves a multiyear processor supply agreement, with AMD supplying 6 gigawatts of processors to OpenAI’s data centers. The revenue-generating shipments for the first gigawatt of AMD Instinct MI450 chips will commence in the second half of 2026. This deal solidifies AMD’s position in the AI infrastructure market.

While AMD may not have won the AI accelerator wars, it scored points with investors through its OpenAI deal. The market for AI hardware is still developing, and AMD’s performance has outpaced Nvidia’s in 2025. Investors are recognizing the potential in this market, where AMD offers advantages such as lower power consumption and cost compared to Nvidia.

Read more at Nasdaq: How AMD Stock Surged 58% Last Month