AMD stock continues to rebound after OpenAI deal, now up 43% this week

AMD The stock soared 11% on Wednesday, continuing its massive rally since OpenAI announced plans to buy billions of dollars of AI equipment from the chipmaker earlier this week.

On Monday, the maker of ChatGPT reached a deal to potentially own 10% of AMD, based on its stock price and partnership milestones.

AMD now has a market capitalization of $380 billion after climbing 4% on Tuesday and 24% on Monday. Shares are up 43% so far this week, matching the best weekly gain since April 2016.

The partnership with OpenAI, historically closely linked to Nvidiahas boosted investor confidence that AMD will be a viable competitor to Nvidia in the AI ​​chip space.

Lisa Su, AMD’s CEO, told reporters on Monday that the deal was a “win-win” and that its AI chips were good enough to be used in “large-scale deployments” or in very large data centers like those built by OpenAI and cloud providers.

Nvidia CEO Jensen Huang reacted to the deal on CNBC’s Squawk Box on Wednesday, calling it “surprising.”

“It’s imaginative, it’s unique and surprising, given that they were so excited about their next-generation product,” Huang said. “I’m surprised they’re giving away 10 percent of the company before they’ve even built it. And anyway, it’s smart, I guess.”