AMD's OpenAI Partnership Won't Generate Meaningful Revenue Until 2026, with Ramp-Up in 2027

AMD's OpenAI partnership won't generate meaningful revenue until the second half of 2026, with the real ramp-up coming in 2027. The deal could add over $100 billion to AMD's sales over the next few years, and the company's Instinct chips offer compelling power efficiency advantages that could attract other major AI players. The revenue clock starts ticking late 2026, with full scale expected in 2027.

Advanced Micro Devices (AMD) has secured a multi-year partnership with OpenAI, a deal that could significantly boost AMD's revenue and solidify its position in the AI hardware market. The agreement, announced in October, involves AMD supplying up to six gigawatts of computing capacity using its next-generation Instinct MI450X GPUs, starting in late 2026. This deal could generate over $100 billion in revenue over the next four to six years AMD's $100 Billion OpenAI Deal Could Supercharge AI Chip Growth, Analyst Says, Projecting Massive Earnings Boost By 2030^[1].

The OpenAI partnership is expected to drive demand across the broader semiconductor, networking, and data center ecosystem, positioning AMD as a strong competitor to Nvidia and Broadcom, which have also struck major AI infrastructure agreements with OpenAI AMD's $100 Billion OpenAI Deal Could Supercharge AI Chip Growth, Analyst Says, Projecting Massive Earnings Boost By 2030^[1]. Bank of America Securities analyst Vivek Arya maintained a Buy rating on AMD and increased the price forecast from $200 to $250, projecting 2025 sales of $32.88 billion and EPS of $3.85 AMD's $100 Billion OpenAI Deal Could Supercharge AI Chip Growth, Analyst Says, Projecting Massive Earnings Boost By 2030^[1].

AMD's Instinct MI450X GPUs, built on TSMC's 2-nanometer (N2) process technology, offer compelling power efficiency advantages that could attract other major AI players AMD Instinct MI450 AI GPU Will Take The Fight To NVIDIA With 2nm Chip Tech^[2]. The chips are designed for high-performance computing and are expected to be used in OpenAI's expanding AI infrastructure, which aims to deploy over 200 gigawatts of compute capacity in the coming years AMD's $100 Billion OpenAI Deal Could Supercharge AI Chip Growth, Analyst Says, Projecting Massive Earnings Boost By 2030^[1].

While the deal won't generate meaningful revenue until the second half of 2026, with the real ramp-up coming in 2027, the potential for significant earnings growth is clear. Each gigawatt of capacity could generate roughly $17.5 billion in revenue, translating to more than $100 billion across the whole deployment AMD's $100 Billion OpenAI Deal Could Supercharge AI Chip Growth, Analyst Says, Projecting Massive Earnings Boost By 2030^[1]. By 2030, AMD could deliver earnings power exceeding $15 per share with a full 6 GW deployment and a 35% margin assumption AMD's $100 Billion OpenAI Deal Could Supercharge AI Chip Growth, Analyst Says, Projecting Massive Earnings Boost By 2030^[1].

AMD's success in this partnership positions it as a growing rival to Nvidia and Broadcom, which have also struck major AI infrastructure agreements with OpenAI. Nvidia's deal, valued at around $100 billion, involves 10 GW of deployment for its Vera Rubin systems starting in 2026 AMD's $100 Billion OpenAI Deal Could Supercharge AI Chip Growth, Analyst Says, Projecting Massive Earnings Boost By 2030^[1]. The competition is heating up, and AMD's advanced chip technology and strategic partnerships could give it a significant edge.

In conclusion, AMD's OpenAI partnership represents a transformative opportunity for the company. While the revenue clock starts ticking late 2026, the full scale is expected in 2027, with the potential to add over $100 billion to AMD's sales over the next few years. The deal highlights AMD's growing role in the AI hardware market and its ability to leverage strategic partnerships to drive growth and innovation.