Advanced Micro Devices shares extend gains, last up 4.2% premarket

Advanced Micro Devices shares extend gains, last up 4.2% premarket

Advanced Micro Devices (AMD) shares have seen significant gains, rising by 4.2% in premarket trading on September 12, 2025. The stock's surge comes on the heels of a landmark partnership with OpenAI, which has bolstered investor confidence in the company's strategic positioning and growth prospects.

Under the terms of the agreement, OpenAI will receive warrants for up to 160 million AMD shares, potentially giving them a 10% ownership stake upon meeting specific deployment milestones and share price targets. This deal involves deploying 6 gigawatts of AMD Instinct GPUs over multiple years, with the initial 1-gigawatt deployment of MI450 series chips scheduled to begin in the second half of 2026 .

AMD's CFO, Jean Hu, commented, "Our partnership with OpenAI is expected to deliver tens of billions of dollars in revenue for AMD while accelerating OpenAI’s AI infrastructure buildout." This partnership is not only a significant boost for AMD but also a strategic move by OpenAI to diversify its chip suppliers, challenging Nvidia's dominance in the AI accelerator market .

The market's reaction to this news has been overwhelmingly positive, with AMD shares opening at a new 52-week high. The stock is within striking distance of its March 2024 all-time highs at $227, pushing the 14-day Relative Strength Index (RSI) into overbought territory and the MACD indicator pointing to a possible bullish trend shift .

In addition to the OpenAI partnership, AMD has also seen gains from potential manufacturing talks with Intel and a new enterprise AI partnership with Cohere. The Cohere deal enables AI models on AMD’s Instinct GPU infrastructure for commercial and sovereign AI applications .

AMD has gained 35.78% year-to-date, outperforming the S&P 500’s 14.10% return over the same period. Analyst price targets range from $125.10 to $230.00, with an average of $185.77, suggesting potential upside .

The semiconductor chip market is projected to reach $1.6 trillion by 2030, providing a robust backdrop for AMD's expansion plans. Despite facing ongoing challenges from supply chain disruptions and geopolitical tensions, AMD's strategic positioning through these partnerships significantly enhances its competitive stance in the evolving semiconductor landscape .

References
https://www.barchart.com/story/news/35253836/advanced-micro-devices-explodes-on-openai-pact-but-is-amd-the-best-ai-chip-stock-to-buy-now
https://parameter.io/amd-stock-intel-manufacturing-talks-and-cohere-ai-deal-boost-shares/