Key Points
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Advanced Micro Devices (AMD) shares rose 77.3% in 2025, significantly outperforming the S&P 500’s gain of 16.4% and Nvidia’s 38.9% increase.
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OpenAI announced a multi-year contract on October 6, 2025, to purchase 6 gigawatts of AMD’s Instinct AI accelerators, a deal projected to generate $120 billion in revenue over the next five years.
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This partnership positions AMD as a competitor to Nvidia in high-end AI workloads, with shipments starting in late 2026.
Shares of Advanced Micro Devices (NASDAQ: AMD) surged 77.3% in 2025, greatly outperforming the S&P 500 index, which gained 16.4%, and rival Nvidia, which rose 38.9%. The uptick in AMD’s stock is attributed to a newly announced multi-year agreement with OpenAI to supply 6 gigawatts of AMD Instinct AI accelerators, worth an estimated $120 billion over five years. This deal, revealed on October 6, 2025, marks a significant shift as AMD begins to seriously compete with Nvidia for high-end artificial intelligence applications.
The agreement entails AMD providing up to 6 million processors, with shipments slated to commence in the second half of 2026. OpenAI’s investment in AMD not only highlights the latter’s competitiveness but also signals confidence from major players in the AI sector. CEO Lisa Su of AMD called the deal a “true win-win,” while OpenAI CEO Sam Altman emphasized the advantages of AMD’s high-performance products.
