Superior Micro Units (NASDAQ: AMD) shares erupted greater in pre-market on Monday after OpenAI confirmed a multi-gigawatt GPU provide deal that would generate over $100 billion in income for the chipmaker in simply the subsequent 4 years.
At its peak, the inventory spiked greater than 26% intraday, one of many sharpest single-day strikes in AMD’s trendy historical past, earlier than settling close to $207.
The settlement marks a transformative second for Superior Micro Units. OpenAI will deploy as much as 6 gigawatts of AMD Intuition GPUs, starting with a 1 GW rollout in 2026, in a venture that rivals Nvidia’s dominance of the AI compute market.
10% stake in AMD
As a part of the deal, OpenAI additionally obtained a warrant permitting it to purchase as much as 160 million AMD shares at $0.01 every, representing roughly 10% of the corporate, contingent on deployment milestones.
The size is breathtaking. A 6 GW infrastructure construct implies tens of thousands and thousands of top-end GPUs, large vitality draw, and unprecedented provide chain coordination. OpenAI, which is quickly increasing its Stargate information middle footprint, framed the partnership as crucial to its long-term AI roadmap.
AMD inventory value evaluation
Markets responded instantly. AMD inventory exploded from the mid-$160s to over $207 in lower than two hours, a vertical line on the chart that underscored the sudden repricing. The surge pushed AMD’s valuation above $300 billion, a stage few analysts had penciled in for 2025.
The timing comes as AI infrastructure demand accelerates and rivals circle. Nvidia stays the entrenched chief in high-end GPUs, however AMD’s Intuition sequence has quietly received credibility in hyperscale workloads.
Nonetheless, the frenzy comes with caveats. Execution threat is huge. Constructing multi-gigawatt GPU capability is a logistical and engineering feat, requiring every little thing from customized cooling methods to secure energy grids. OpenAI’s prices shall be astronomical, and AMD shall be beneath relentless strain to satisfy deadlines. In the meantime, Nvidia and customized chip startups are unlikely to face nonetheless.
