This Is Why Advanced Micro Devices (NASDAQ: AMD) Is up 26% Today

Advanced Micro Devices (NASDAQ: AMD | AMD Price Prediction) is up about 25%, or by $42.77 per share, to $207.44. Intraday volume is up to 136.4 million, as compared to its daily average volume of 53.4 million.

All after AMD announced a long-term deal to become a key supplier to OpenAI’s AI infrastructure program. “OpenAI plans to deploy 6 gigawatts worth of AMD Instinct graphics processing units, or GPUs, over the course of the partnership. The first 1 gigawatt deployment will begin in the second half of 2026, the companies said. For context, one nuclear reactor can typically generate one gigawatt of electricity, as reported by Barron’s.

AMD added that the new partnership will allow it to generate billions of dollars in annual revenue. It will also allow it to generate over $100 billion in total revenue from chips over the next few years.

Analysts Just Raised Their Price Target on AMD by $100

Even better, analysts at Barclays just raised their price target on AMD by $100 to $300.

“The price target increase follows AMD’s partnership deal with OpenAI, which Barclays describes as ‘designed to be mutually beneficial to OpenAI and AMD, and more pointedly drive the stock higher,’” added Investing.com.

Plus, according to analysts at Wedbush, the latest deal is a “major movement in AI revolution.”

“This is yet another validation sign that the AI Arms Race is heating up among Big Tech firms with AMD now joining the AI party as this 1996 Moment for the tech world accelerates. With a 10% stake in AMD this quickly brings Lisa Su and AMD right into the core of the AI chip spending cycle and is a huge vote of confidence from OpenAI and Altman,” said the analysts, as quoted by Seeking Alpha. “Any lingering fears around AMD should now be thrown out the window as this gives them a major platform to monetize the AI Revolution.”

Recent Earnings Weren’t Too Shabby

In addition, in its most recent quarter, AMD’s revenue of $7.69 billion beat expectations for $7.43 billion. Adjusted EPS of 48 cents missed by a penny.

Its data center segment revenue was $3.2 billion, up 14% year-over-year. Its client and gaming segment revenue was $3.6 billion, up 69% year-over-year. We’ll get another look at AMD earnings when the company reports again on Tuesday, November 4, 2025.

“We delivered strong revenue growth in the second quarter, led by record server and PC processor sales,” said Dr. Lisa Su, AMD Chair and CEO, as quoted in AMD’s earnings release.

“We are seeing robust demand across our computing and AI product portfolio and are well positioned to deliver significant growth in the second half of the year, driven by the ramp of our AMD Instinct MI350 series accelerators and ongoing EPYC and Ryzen processor share gains.”

AI Demand Is Still Exploding 

According to Grand View Research, the global AI boom could grow from about $137 billion in 2022 to more than $1.81 trillion by 2030.

All of which will have a substantial impact on AMD moving forward.

According to the Marketing AI Institute, “Artificial intelligence will, on average, boost rates of profitability by 38% and provide an economic boost of $14 trillion in additional gross value by 2035, according to research by Accenture.

Even MIT Technology Review once said, “Artificial intelligence is changing the world and doing it at breakneck speed…. The experts go on to predict a 50 percent chance that AI will be better than humans at more or less everything in about 45 years.” Yet, this is only the start – and its potential impact on your portfolio could be significant.