Stock Market Update: AMD Rises Due to OpenAI Partnership

Advanced Micro Devices Sees Notable Gains

Advanced Micro Devices (NASDAQ: AMD) closed with a significant uptick of 11.37%, reaching $235.56. The trading volume was notably high, totaling 154 million shares, almost triple the three-month average of 58 million shares. During the session, the stock also achieved a new 52-week high of $235.87.

In the wider market, the US markets were on the rise as well. The S&P 500 (SNPINDEX: ^GSPC) climbed 0.58% to 6,753.72, while the Nasdaq Composite (NASDAQINDEX: ^IXIC) increased by 1.12% to 23,043.38. This lift was largely attributed to growing interest in artificial intelligence.

Some notable movements in the tech sector included Nvidia Inc. (NASDAQ: NVDA), which rose by 2.20%, reaching $189.11, and Broadcom Co., Ltd. (NASDAQ: AVGO), which saw a 2.70% increase to $345.50.

AMD’s impressive performance can be traced back to its announcement on October 6 about a strategic partnership with OpenAI. This agreement involves deploying up to 6 GW of AMD GPUs, with the first 1 GW phase expected in the latter half of 2026. Additionally, if significant performance targets are met, OpenAI has the option to acquire up to 160 million AMD shares. There’s also news of further collaborations with IBM (NYSE: IBM) and discussions with Zyphra regarding potential foundry deals, which only adds to the optimism surrounding AMD’s growing foothold in the AI space. Analysts responded favorably, with Jefferies upgrading the stock’s rating to a “buy” and raising its price target.

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