AMD’s stock price continued to surge after the shock announcement of its alliance with OpenAI on October 6, with a surge of 43% in just three trading days. Analysts believe that the current focus depends on how quickly the MI450 graphics processor (...
AMD’s stock price continued to surge after the shock announcement of its alliance with OpenAI on October 6, with a surge of 43% in just three trading days. Analysts believe that the current focus depends on how quickly the MI450 graphics processor (GPU) can expand production.
MarketWatch reported on the 9th that Mizuho analyst Jordan Klein said that the focus now is how fast AMD can expand the production of MI450 graphics processors (GPUs) to achieve OpenAI’s 6 gigawatt (GW) deployment goal.
Klein admitted that fund managers who can only do long positions are skeptical about AMD's recent surge in prices and are not willing to chase the rise. However, he believes that there will be more catalysts in the future, including the key legal meeting in November.
Dave Novosel, a senior analyst at Gimme Credit, said on the 8th that the reason behind the agreement between OpenAI and AMD should be to diversify chip suppliers. It's unclear whether NVIDIA (Nvidia Corp.) can meet all of OpenAI's chip needs.
Novosel believes that OpenAI obviously highly recognizes AMD chips, which may prompt others to follow suit and adopt AMD GPUs.
AMD soared 11.37% at the end of the 9th to close at $235.56, ranking highest among the 30 constituent stocks of the Philadelphia Semiconductor Index and setting a record closing high; it has soared 43.05% so far this week.
Dow Jones Market Data statistics show that this is AMD’s best three-day rally since April 2016 (when it soared 52.3% in three days).
Mizuho’s analyst team led by Vijay Rakesh recently warned that the MI450 series may face many challenges related to funding when it is launched. OpenAI has raised approximately US$47 billion in 2025, including investment from NVIDIA. In addition, TSMC's production capacity may also be in a tight state before the end of 2026, mainly because NVIDIA's Rubin platform will begin to expand production by then, and Broadcom Inc.'s ASIC chip demand will also heat up.
Further reading: Is the alliance between OpenAI and AMD Century a good thing for infinite loop AI, or is it a bubble in the ultimate money game? Alliance with OpenAI, market recognition of GPU ecosystem, AMD’s share will increase to over double digits The AMD-OpenAI deal pushed up the stock price by 43% in a week, Huang Renxun bluntly said: This is very smart Considering Intel Foundry? Su Zifeng has a conservative attitude and emphasizes in-depth cooperation with TSMC
