AMD's CEO Dr. Lisa Su is "so deserving" of success and the company's AI chip performance is "verification of the total addressable market" of AI GPU demand, says Jim Cramer.

Jim Cramer praises Advanced Micro Devices (AMD) for not quitting, citing CEO Dr. Lisa Su's determination and the firm's AI chip performance. The stock jumped 23% after announcing a partnership with OpenAI. Cramer believes AMD's demand for AI GPUs verifies the total addressable market.

Advanced Micro Devices (AMD) has received a significant boost to its AI chip leadership with a strategic partnership announced on October 6, 2025. The company has entered into a multi-year agreement with OpenAI to deploy 6 gigawatts of AMD Instinct GPUs for the latter's next-generation AI infrastructure. This deal positions AMD as a core supplier in the rapidly expanding AI hardware market, underscoring growing demand for high-performance compute solutions in artificial intelligence Advanced Micro Devices (AMD) Is Up 26.2% After Securing Major Multi-Year AI Chip Deal With OpenAI^[1].

The initial 1 gigawatt rollout is scheduled for the second half of 2026, with the potential for OpenAI to acquire up to 10% of AMD's shares as key milestones are met. This partnership not only deepens AMD and OpenAI's multi-generational hardware and software collaboration but also adds a significant catalyst to AMD's growth potential Advanced Micro Devices (AMD) Is Up 26.2% After Securing Major Multi-Year AI Chip Deal With OpenAI^[1].

The partnership's financial implications are substantial. Bank of America maintains a Buy rating on AMD stock, with a $250 price target, after the OpenAI partnership details revealed a $15-20 billion per gigawatt opportunity shipping in late 2026 AMD Stock Gets Buy Rating From BofA Following OpenAI Partnership^[2]. This agreement could generate tens of billions of dollars in revenue for AMD over the next few years, according to AMD CEO Lisa Su AMD CEO Lisa Su says AI critics are 'thinking too small' after massive OpenAI deal^[3].

AMD's Q3 2025 revenue forecast stands at $8.73 billion, representing a 28% year-over-year growth, with earnings projected at $1.17 per share. The stock trades at 52 times forward earnings, exceeding Nvidia's valuation multiple despite AMD's slower growth trajectory AMD Stock Gets Buy Rating From BofA Following OpenAI Partnership^[2].

The OpenAI partnership has also led to a significant increase in AMD's stock price. Shares of AMD jumped by as much as 35% on Monday after the announcement, reaching an early 2024 all-time high AMD CEO Lisa Su says AI critics are 'thinking too small' after massive OpenAI deal^[3]. This surge underscores investor confidence in AMD's AI strategy and the company's ability to capture a significant share of the high-growth AI and data center markets.

However, AMD faces intense competition in the AI hardware market. While the OpenAI partnership is a significant milestone, AMD must continue to innovate and maintain its competitive edge to capitalize on the growing demand for AI chips Advanced Micro Devices (AMD) Is Up 26.2% After Securing Major Multi-Year AI Chip Deal With OpenAI^[1].

In conclusion, AMD's partnership with OpenAI represents a strategic boost for the company's AI chip leadership. The deal not only positions AMD as a core supplier in the rapidly expanding AI hardware market but also adds a significant catalyst to the company's growth potential. However, AMD must continue to innovate and maintain its competitive edge to capitalize on the growing demand for AI chips.