Meta Description: AMD gets a major boost as OpenAI’s massive chip deal sends its stock soaring 24%. Jefferies upgrades AMD to a “buy” with a $300 target, signaling strong confidence in its AI growth.
AMD Takes Center Stage After OpenAI Deal
Advanced Micro Devices (AMD) just became the talk of Wall Street. After a massive 24% jump in its stock price, analysts at Jefferies upgraded AMD from “hold” to “buy.” The sudden confidence comes after AMD announced a major partnership with OpenAI, the company behind ChatGPT.
Jefferies analyst Blayne Curtis even admitted, “We rarely do this,” acknowledging how quickly AMD’s AI story has changed. The team confessed that while they had already raised estimates recently, they hadn’t expected the company’s AI momentum to move this fast.
OpenAI’s Big Bet on AMD
The spark behind AMD’s surge was OpenAI’s decision to buy up to 6 gigawatts (GW) of AMD chips — a move that could generate over $100 billion in revenue potential, according to Jefferies.
Each gigawatt, AMD explained, could bring in “double-digit billions” in sales, a huge win for the company’s AI chip segment.
OpenAI’s spending spree isn’t limited to AMD. The AI giant is also working with Nvidia, Oracle, Hynix, and Samsung, highlighting how crucial advanced chips are for powering large-scale AI models and data centers.
AMD vs. Nvidia: The New AI Rivalry
| Company | Strength | Key AI Partner | Analyst Price Target |
|---|---|---|---|
| AMD | AI server chips, efficiency | OpenAI | $300 (Jefferies) |
| Nvidia | Market leader in AI GPUs | Multiple cloud providers | $470 (average) |
| Intel | General computing, lagging in AI | Limited AI exposure | $150 (average) |
This comparison shows AMD’s rise as a serious competitor to Nvidia, which has long dominated the AI hardware scene. With OpenAI’s trust and market excitement, AMD’s position in the AI race looks stronger than ever.
Analysts Split, But Momentum Is Strong
While Jefferies raised AMD’s price target to $300, others remain cautious. Goldman Sachs still sees the stock near $150, and Deutsche Bank and Wedbush have lower targets too — all under AMD’s current price of $203.71.
Even so, the 24% surge reflects growing investor belief in AMD’s AI strategy. MarketWatch noted the move as a 6-standard-deviation event — extremely rare in stock market terms. Yet, this wasn’t even AMD’s biggest jump this year; it gained 23.8% back in April.
The Future Looks Bright for AMD
AMD’s partnership with OpenAI could mark the start of a new chapter. With AI demand accelerating worldwide, chipmakers are racing to meet the need for more computing power.
For AMD, this upgrade signals more than just a good week on the market — it’s a shift in perception. From being seen as Nvidia’s competitor, AMD is now being recognized as a major player in the global AI chip revolution.
