OpenAI Deal stock skyrockets 35% U.S. Stocks May See Initial Strength On AMD
OpenAI has struck a sweeping deal
with chipmaker AMD to secure processors for artificial intelligence systems, an agreement that could give the ChatGPT maker a 10% stake in AMD and further speeds up its trillion-dollar infrastructure push.
(RTTNews) – Following the mixed performance seen during last Friday’s session, stocks are likely to move to the upside in early trading on Monday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.3 percent.
Technology stocks may help lead an early advance, as reflected by the 0.9 percent jump being shown by the
Nasdaq 100 futures.
OpenAI Deal stock skyrockets 35% U.S. Stocks May See Initial Strength On AMD
- AMD stock surged on Monday on news of a major AI deal.
- The semiconductor company announced a multi-year deal to provide chips to OpenAI.
- The deal puts AMD in a better spot to compete with Nvidia, which also recently inked a deal with OpenAI.
The move:
AMD stock surged 35% on Monday to $223.50 ahead of the opening bell, rebounding after it fell 3% on Friday. The semiconductor producer was up 36% year-to-date through Friday’s close.
The chipmaker will deploy its AMD Instinct GPUs to help power OpenAI’s fast-growing infrastructure, with the first deployment scheduled for the second quarter of 2026. In total, all the AMD chip deployments will extend 6 gigawatts of power to OpenAI, across multiple generations of AI infrastructure.
The companies announced Monday that OpenAI will deploy up to 6 gigawatts of AMD’s high-performance graphics processing units, or GPUs, across several years and generations of hardware. The rollout will begin in the second half of 2026, and more capacity will be added in phases until the full 6-gigawatt target is reached.
As part of the agreement, AMD has issued OpenAI a warrant for up to 160 million shares of AMD common stock, structured to vest as specific milestones are achieved.
OpenAI Deal stock skyrockets 35% U.S. Stocks May See Initial Strength On AMD
Optimism about a wave of merger and acquisition activity may also generate early buying interest after Fifth Third Bancorp (FITB) agreed to acquire fellow regional bank Comerica (CMA) in an all-stock transaction valued at $10.9 billion.
Shares of Comerica are surging by 14.1 percent in pre-market trading following news of the deal, with stockholders set to receive 1.8663 Fifth Third shares for each Comerica share, representing $82.88 per share as of Fifth Third’s closing price on Friday.
Meanwhile, traders continue to shrug off concerns about the economic impact of the ongoing government shutdown, which enters its sixth day amid little signs of progress toward a deal on a temporary spending bill.