AMD Stock Price Set to Test Highs on AI Partnership Momentum

Advanced Micro Devices stock (AMD) is poised to test its previous high today, driven by bullish sentiment surrounding strategic partnerships and advancements in the artificial intelligence (AI) sector. This morning's pre-market activity saw a gain of 0.63%, pushing the price to $240.10, matching the stock's peak.

The markets have reacted positively to AMD's recent AI initiatives, contributing to a significant upswing in its stock price. The stock experienced a 9.40% surge on Wednesday, contributing to a remarkable 48.70% increase over the past month.

A key catalyst for this surge is AMD's strategic alliance with OpenAI, announced on October 6, 2025. The multi-year agreement involves AMD supplying OpenAI with its Instinct MI450 GPUs, with a planned deployment of up to six gigawatts over several years. The initial rollout, scheduled for 2026, will see one gigawatt of AMD's GPUs integrated into OpenAI's infrastructure.

This partnership is projected to generate tens of billions in revenue for AMD, and includes an option for OpenAI to acquire up to a 10% stake in AMD through warrants, contingent on specific performance milestones.

Further bolstering AMD's position in the AI hardware market is its expanded collaboration with Oracle, announced on October 14,. This partnership focuses on deploying 50,000 MI450 Instinct GPUs and Zen 6 Epyc CPUs within Oracle's cloud infrastructure. The deployment, slated for the second half of 2026, is designed to support AI superclusters, directly challenging Nvidia's dominance in the AI hardware space.

Analysts are closely watching AMD's aggressive expansion into the AI sector, viewing it as a significant growth driver. The company's strategic partnerships with OpenAI and Oracle, coupled with its focus on AI systems design and domestic manufacturing, position AMD as a formidable competitor to Nvidia. Price targets have risen thick and fast on Wall St, and markets seem to be unperturbed by the pace of the rally so far.