AMD stock jumped 5% in the pre-market trading on Tuesday, keeping the rally going after its big news with OpenAI.
Just a day before, AMD had already shot up 27% to $203.71 following the announcement of the partnership.
Even before the market officially opened on Tuesday, investors were already showing excitement in pre-market trading, clearly bullish on the company’s AI growth potential.
AMD stock booms on OpenAI partnership
Tuesday was another strong day for AMD. Its shares climbed 5% in pre-market trading and stayed solid throughout the day, backed by heavy trading volumes that showed just how hungry investors are for AMD stock right now.
This came right after Monday’s massive 27% jump, triggered by news that OpenAI plans to use up to six gigawatts of AMD’s high-performance Instinct GPUs for its AI infrastructure over the coming years.
In a space long dominated by Nvidia, AMD’s gains are a big deal.
They are signaling that AMD is becoming a serious player in the AI chip market.
Tuesday’s trading volumes even topped recent averages, highlighting the market’s confidence in the partnership and the planned deployments, which are expected to kick off in the second half of 2026.
Compared to giants like Nvidia, AMD’s surge is a clear sign that investors are betting big on its tech and strategic direction, especially with the OpenAI deal projected to be worth between $80 billion and $100 billion through 2030.
Analysts make ‘rare move’
Analysts widely praised AMD stock rally, with several boosting their price targets on the strength of the OpenAI partnership.
Jefferies used a dramatic phrase to emphasize the significance of AMD’s recent surge and upgraded the stock from “Hold” to “Buy,” lifting its price target from $170 to $300.
Blayne Curtis, the lead analyst, stated, “We rarely do this but are upgrading AMD post their announcement with OpenAI this morning.”
The analysts pointed out that OpenAI’s commitment to buying huge amounts of AMD gear could be a game-changer for the chipmaker’s AI prospects, with the deal alone expected to bring in well over $100 billion in revenue over the next four years.
Jefferies even bumped up their earnings-per-share forecasts for 2026 and 2027, showing strong confidence that AMD’s growth story is just getting started.
Other analysts were quick to jump on the positive bandwagon.
They pointed out that the OpenAI partnership doesn’t just lock in a huge revenue stream as it also boosts AMD’s credibility in the cutthroat AI market, especially in a space long dominated by Nvidia.
Of course, some analysts still caution that there are execution risks with rolling out GPUs at such a massive scale. But the overall sentiment is clear: AMD looks like a big winner from the AI infrastructure boom.
Most see the OpenAI deal as a defining moment for the company, one that could set the stage for steady stock growth in the years ahead.
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