AMD Stock Rises Following Multi-Year AI Chip Supply Deal with OpenAI

Advanced Micro Devices (AMD) shares surged to a 19-month high following the announcement of a multi-year supply agreement with OpenAI. Under the deal, OpenAI will purchase multiple generations of AMD’s AI chips, potentially taking a 10% stake in the company. AMD projects that this partnership, along with sales to other customers, could generate over $100 billion in revenue over four years. On Monday, AMD’s stock jumped 24%, and on Tuesday it rose more than 5%, trading around $215, positioning the company for a record closing high. Year-to-date, AMD shares have increased 77%, outperforming Nvidia’s 40% gain. Technical analysis shows AMD breaking out of an inverse head and shoulders pattern, suggesting further bullish potential. Key resistance levels are identified at $227 and $272, while support levels are seen near $174 and $150. The relative strength index indicates the stock is entering overbought territory, but historical peaks suggest more room for upward movement. Short-term caution is advised as the stock recently closed near its daily low, hinting at possible retracements. Investors are advised to monitor these critical levels to guide buying and selling decisions amid AMD’s strong performance following the OpenAI deal.