AMD Stock Soars 30% as OpenAI Seeks 10% Stake. Why This Collab Threatens Nvidia.

Chip designer’s stock added nearly $60 billion to its valuation. It also leapfrogged Nvidia in year-to-date gains with over 55% against Nvidia’s 35%.

🛒 OpenAI Goes Shopping

• AMD stock AMD ripped 30% higher Monday, adding roughly $60 billion to its market cap before the opening bell. The shares surged after OpenAI revealed plans to acquire up to a 10% stake in the chipmaker as part of a multibillion-dollar collaboration.
• Under the deal, OpenAI will purchase 6 gigawatts’ worth of AMD chips, starting with the MI450 line next year. That’s capacity that could rake in tens of billions in revenue over the next five years, according to AMD CEO Lisa Su.
• OpenAI gets warrants for up to 160 million AMD shares at $0.01 apiece, exercisable if certain deployment milestones are met. If exercised fully, that’s about a 10% stake in AMD — and one huge vote of confidence from the key man, Sam Altman.

👉 Altman Picks a Second Supplier

• The move to diversify its supplier pool was about to happen sooner or later. Through the AMD deal, OpenAI is hedging its bets away from Nvidia, which currently powers the bulk of ChatGPT’s compute infrastructure.
• AMD’s MI450 chips will handle AI inference workloads, that’s the complex math that lets AI apps generate responses in real time.
• “AMD’s leadership in high-performance chips will enable us to accelerate progress and bring advanced AI to everyone faster,” said Altman, echoing what every GPU-desperate CTO has probably been thinking for months.
• The partnership could ease industry-wide chip shortages, diversify OpenAI’s hardware dependence, and possibly pressure Nvidia’s pricing power – a subtle but significant shift in the AI chip hierarchy.

🤑 Wall Street’s Reaction

• AMD’s $60 billion surge in market cap makes it one of the top S&P 500 movers of 2025, propelling it past Nvidia NVDA in year-to-date gains – up 55% vs Nvidia’s 35%. It’s also now sitting closer to the $500 billion valuation club.
• You can probably think of this as AMD’s biggest strategic win since its Ryzen comeback in 2017. The deal could lock in a long-term revenue pipeline and boost investor confidence in its AI roadmap.
• Meanwhile, Nvidia’s investors looked uneasy, trimming 1.3% off the stock Monday morning after news of the partnership broke.
• But Jensen Huang’s GPU empire isn’t a stranger to steep dips and sharp climbs. It holds the record for the biggest single-day wipeout. And it also just recently secured a $100 billion deal with OpenAI. So there’s that.