AMD Stock Surges With OpenAI Deal Announcement

Published OCT 6

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Above: The OpenAI logo appears on a smartphone screen placed on a computer keyboard in Creteil, France, on Oct. 1, 2025. Image copyright: Samuel Boivin/NurPhoto/Getty Images

The Spin

Narrative A

Nvidia's stranglehold is crumbling. AMD's monumental 6 GW OpenAI partnership — potentially worth tens of billions — shatters the illusion of Nvidia's invincibility. OpenAI's strategic diversification, granting AMD a core compute partnership alongside massive warrant stakes, signals a seismic market realignment. The AI industry's insatiable demand has opened the floodgates, and AMD's high-performance Instinct processors are poised to demolish Nvidia's monopolistic reign.

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Narrative B

Despite AMD's OpenAI partnership, Nvidia's supremacy remains unassailable. The AI giant commands a staggering 92% market share, generates profits exceeding AMD's by orders of magnitude, and continues revolutionizing performance with each GPU generation. Even losing marginal market share is inconsequential — the exploding GPU market ensures Nvidia's dominance persists. AMD's advances merely validate Nvidia's pioneering vision while trailing its technological leadership.

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