AMD Surges 3.93% Despite 9th-Place Trading Volume Drop to $9.12B as OpenAI Deal and Institutional Buys Fuel AI Growth

Market Snapshot

Advanced Micro Devices (AMD) closed on November 26, 2025, with a 3.93% intraday price increase, despite a 34.74% decline in trading volume to $9.12 billion—a drop that saw the stock rank ninth in daily trading volume. While the volume contraction suggests reduced short-term liquidity or speculative activity, the price gain aligns with broader technical and fundamental catalysts. The stock’s performance contrasts with its recent volatility, including a post-earnings pullback in November that erased gains from an October rally driven by a high-profile chip deal with OpenAI.

Key Drivers

Strategic AI Partnerships and Revenue Projections

AMD’s recent multi-year chip supply agreement with OpenAI, announced in October, remains a pivotal catalyst. This deal, described as “transformative” by AMD executives, positions the company to capitalize on the surging demand for AI infrastructure. The agreement directly influenced the company’s bullish Q4 revenue guidance, which projected $9.6 billion in sales—$350 million higher than Q3 and exceeding consensus estimates. CEO Lisa Su emphasized that Data Center segment sales, a key revenue driver, are expected to grow at an 80% annualized rate over the next three years, fueled by AI-related computing needs.

Institutional Investor Confidence

Significant institutional activity underscores confidence in AMD’s long-term prospects. Billionaire Steve Cohen’s Point72 increased its AMD stake by 30% in Q3, adding 1.74 million shares valued at $358 million. Similarly, Appaloosa, managed by David Tepper, acquired 950,000 shares worth $196 million. These moves highlight the firm’s alignment with the AI megatrend, as Cohen’s firm also bolstered holdings in Nvidia and Broadcom. Such large-scale investments signal that institutional investors view AMD’s role in AI infrastructure as a durable growth engine.

Technical Resilience and Market Positioning

From a technical perspective, AMD’s stock has shown resilience despite short-term volatility. A post-earnings pullback in November brought the price near the 100-day moving average, a critical support level, before triggering a rebound supported by Fibonacci retracement levels. Analysts note that a break below the 100-day MA could test the $171 level, but the current trajectory suggests a potential buying zone at $193. This technical setup reflects broader market sentiment that AMD’s fundamentals—particularly its Data Center and AI-driven revenue streams—remain robust.

AI Market Expansion and Competitive Dynamics

The global AI market’s projected growth to $4.8 trillion by 2033, up from $391 billion in 2025, amplifies AMD’s strategic positioning. As the second-largest GPU provider behind Nvidia, AMD is well-placed to benefit from the industry’s shift toward AI accelerators. The company’s end-to-end AI infrastructure strategy—encompassing chips, interconnects, and software tools—further differentiates it in a competitive landscape. With GPUs forming the backbone of AI projects, AMD’s ability to scale its Data Center business aligns with the UNCTAD report’s forecast of sustained industry expansion.

Earnings Momentum and Operational Strength

AMD’s Q3 earnings highlighted operational strength, with Data Center revenue exceeding $4.3 billion. The company’s Q4 forecast of $9.6 billion in revenue reflects sequential growth and reinforces its ability to monetize AI demand. Management attributes this momentum to a “multi-year runway” of AI-driven computing needs, supported by enterprise and consumer applications. While short-term volatility may persist, the combination of strong earnings, strategic partnerships, and institutional backing positions AMD to outperform in the AI-driven market.

Conclusion

AMD’s recent performance reflects a confluence of strategic, technical, and institutional factors. The OpenAI deal and AI market tailwinds provide a long-term growth narrative, while institutional investments underscore confidence in the company’s execution. Despite near-term volatility, the stock’s technical indicators and revenue projections suggest a resilient trajectory, anchored by its leadership in AI infrastructure and expanding data center demand.