Advanced Micro Devices shares jumped 28 percent on Monday after the company announced a partnership with OpenAI to supply graphics processing units needed for artificial intelligence operations. The multi-year agreement includes delivery of six gigawatts worth of GPU chips beginning in the second half of 2026, and AMD will offer OpenAI the option to purchase up to 160 million shares at one cent each.
The share acquisition plan includes performance targets, with one milestone requiring AMD stock to exceed 600 dollars per share compared to Friday's closing price near 165 dollars. OpenAI will receive its first shares when AMD delivers the MI450 AI chips next year, providing computing capacity for the company's Stargate data center project. AMD manager Forrest Norrod described the agreement as a turning point for the semiconductor industry, while the announcement caused a slight decline in shares of competitor Nvidia.
The share acquisition plan includes performance targets, with one milestone requiring AMD stock to exceed 600 dollars per share compared to Friday's closing price near 165 dollars. OpenAI will receive its first shares when AMD delivers the MI450 AI chips next year, providing computing capacity for the company's Stargate data center project. AMD manager Forrest Norrod described the agreement as a turning point for the semiconductor industry, while the announcement caused a slight decline in shares of competitor Nvidia.
