Advanced Micro Devices (NASDAQ:AMD) stock soared pre-market on Monday after OpenAI confirmed a multi-gigawatt GPU supply deal that could generate more than $100 billion in revenue for the chipmaker over just the next four years.
At its peak, the stock soared more than 26% during the day, making it one of the steepest single-day price movements in AMD's modern history, before settling around $207.
This agreement marks a transformative moment for Advanced Micro Devices. OpenAI, a project that rivals Nvidia's dominance in the AI computing market, plans to deploy up to 6 GW of AMD Instinct GPUs, starting with a 1 GW deployment in 2026.
10% AMD stock
As part of the deal, OpenAI also received a warrant to purchase up to 160 million AMD shares, or about 10% of the company, at $0.01 each, subject to implementation milestones.
The scale is breathtaking. Building 6 GW of infrastructure means tens of millions of top-end GPUs, massive energy consumption, and unprecedented supply chain coordination. OpenAI, which is rapidly expanding its Stargate data center footprint, views this partnership as critical to its long-term AI roadmap.
AMD stock price analysis
The market reacted immediately. AMD's stock price soared from the mid-$160s to more than $207 in less than two hours, with a vertical line on the chart highlighting the sudden price increase. The surge pushed AMD's valuation to more than $300 billion, a level that few analysts had expected for 2025.
The timing comes as demand for AI infrastructure accelerates and competitors cycle. Nvidia remains the firm leader in high-end GPUs, but AMD's Instinct series has quietly gained credibility for hyperscale workloads.
Still, caution is needed in this enthusiasm. The execution risks are enormous. Building multi-gigawatt GPU capacity is a logistical and engineering feat, requiring everything from custom cooling systems to a stable power grid. OpenAI's costs will be astronomical, and AMD will be under relentless pressure to meet deadlines. Meanwhile, Nvidia and custom chip startups are unlikely to stand still.
