Advanced Micro (AMD) Rockets to Fresh High on New Billion-Dollar Deal Opportunity

We recently published 10 Stocks Investors Are Gobbling Up. Advanced Micro Devices Inc. (NASDAQ:AMD) is one of the top performers on Monday.

Advanced Micro propelled to a new all-time high on Monday, as investors cheered a chip supply deal with OpenAI, which could deliver the former billion-dollar revenues and lure a 10-percent investment from the latter.

In a statement, Advanced Micro Devices Inc. (NASDAQ:AMD) said it inked a definitive agreement with OpenAI for the supply of 6 GW of AI infrastructure to enable large-scale AI deployments and advance the entire ecosystem.

The first gigawatt is expected to be delivered in the second half of 2026.

“Our partnership with OpenAI is expected to deliver tens of billions of dollars in revenue for AMD while accelerating OpenAI’s AI infrastructure buildout,” said Advanced Micro Devices Inc. (NASDAQ:AMD) Chief Finance Officer Jean Hu.

“This agreement creates significant strategic alignment and shareholder value for both AMD and OpenAI and is expected to be highly accretive to AMD’s non-GAAP earnings-per-share,” she added.

As part of the agreement, Advanced Micro Devices Inc. (NASDAQ:AMD) has issued a warrant to OpenAI for an option to acquire 160 million AMD shares, structured to vest as specific milestones are achieved, including the first GW delivery.

While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.