AMD Stock Hits Record High Amid OpenAI Partnership

Advanced Micro Devices (AMD) shares reached a new all-time high on Friday, closing at $252.92, and continued to rise on Monday, up 1% as of this writing. Year-to-date, the stock has more than doubled, reflecting strong investor confidence.

The surge follows AMD's announcement of a strategic partnership with OpenAI to supply up to 6 gigawatts of GPU computing power for OpenAI's next-generation AI infrastructure. The initial deployment of 1 gigawatt using AMD's Instinct MI450 Series GPUs is scheduled for the second half of 2026.

As part of the agreement, AMD has issued OpenAI a warrant to purchase up to 160 million shares of AMD common stock, contingent upon achieving specific milestones.

Dr. Lisa Su, AMD's chair and CEO, stated, "We are thrilled to partner with OpenAI to deliver AI compute at massive scale. This partnership brings the best of AMD and OpenAI together to create a true win-win enabling the world’s most ambitious AI buildout and advancing the entire AI ecosystem."

Sam Altman, co-founder and CEO of OpenAI, commented, "This partnership is a major step in building the compute capacity needed to realize AI’s full potential. AMD’s leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster."

Analysts have responded positively to the news, with several firms raising their price targets for AMD. Barclays and Jefferies both set targets at $300, while Benchmark and Morgan Stanley adjusted theirs to $270 and $246, respectively.

The partnership is expected to generate tens of billions of dollars in revenue for AMD over its duration, significantly enhancing the company's position in the AI hardware market.