Advanced Micro Devices (AMD) stock has risen by 62.8% over the course of 21 trading days. The gains are driven in part by the company’s major deal with ChatGPT maker OpenAI, to supply tens of thousands of its GPU chips for 6 gigawatts of computing capacity over the next five years.

AMD downgraded to Hold as overvaluation caps upside before Q3 earnings. Explore risks, opportunities, and expert analysis.

AMD’s flagship Instinct MI350 chips, developed on the CDNA 4 architecture, aim to deliver up to four times more AI compute along with 35 times faster inference compared to their predecessors.

Spending on AI has accelerated in recent months, as Wall Street anticipates global expenditures nearing half a trillion dollars by 2026.

Advanced Micro Devices (NASDAQ:AMD) stock is having a pretty easy time outperforming Nvidia (NASDAQ:NVDA) so far this year, with an impressive 95% gain year to date versus just 31% for NVDA stock. Indeed,

The deal with OpenAI shows AMD is competitively positioned to benefit from the buildout of new data centers to support growing demand for AI services like ChatGPT. OpenAI already has over 700 million weekly users, and that figure will likely grow into the billions, considering how powerful these AI models are becoming.

AMD now has Ryzen 100 Zen 3+ CPUs, Ryzen 10-series Zen 2 CPUs alongside Ryzen AI 300, 9000, 8000, and 7000 series. Phew.

AI's Golden Triad (NVDA, AMD, AVGO) now worth $6.8 trillion, up 10x in 3 years. Despite stretched valuations, smart money still buying.