Advanced Micro Devices (NASDAQ: AMD) continues to impress.
The last time we featured the stock in late August, AMD was trading near $167.76. At that point, we noted that the stock had formed a triple-bottom support and was beginning to pivot higher. We projected a near-term retest of $185, followed by a longer-term move toward $200.
Fast forward to today — AMD just hit $210.80 and could have even more room to run.
AI Partnership Fuels Growth
The catalyst?
A blockbuster deal with OpenAI that positions AMD as a key supplier for its rapidly expanding AI infrastructure.
Under the agreement, OpenAI plans to deploy 6 gigawatts worth of AMD’s Instinct GPUs over the next few years. To put that in perspective, one nuclear reactor produces roughly one gigawatt of electricity — highlighting the massive scale of this project.
The first 1-gigawatt deployment is set to begin in the second half of 2026.
According to AMD, this partnership could generate billions in annual revenue, potentially surpassing $100 billion in total chip revenue over the next several years.
Analysts Are Taking Notice
Analysts are responding quickly to the news.
Barclays recently raised its price target on AMD by $100, bringing it to $300 per share. The firm called the OpenAI partnership “mutually beneficial” and said it’s likely to “drive the stock higher.”
Wedbush also weighed in, describing the collaboration as a “major movement in the AI revolution.”
With the AI industry expanding at record speed, AMD’s positioning as a trusted supplier to OpenAI could mark a significant turning point — not just for the company, but for the entire semiconductor sector.
Technical Perspective
From a technical standpoint, AMD remains in a strong uptrend. The breakout above $200 confirms bullish momentum, and the next key resistance level appears near $230.
If buyers continue to defend support around $195–$200, we could see another leg higher in the coming weeks — especially if additional AI-related contracts are announced.
The Bottom Line
AMD’s partnership with OpenAI is a game changer. The deal adds credibility to its growing AI portfolio and reinforces its role as a key competitor to Nvidia in the GPU market.
With both technical strength and fundamental momentum in its favor, AMD may continue to attract traders and investors looking for exposure to the AI boom.
Ian Cooper is an experienced trader who uses a combination of technical, fundamental, and news analysis to help individual investors grow their wealth. Ian’s Premium Options Strategies