While this deal is important for AMD, what it really signaled was that a leading generative AI company plans on using AMD's hardware. That's a big deal, as AMD's technology has always been seen as a downgrade from Nvidia.

AMD has been establishing itself as a much more formidable rival to Nvidia lately, with ChatGPT maker OpenAI planning to be a big customer and potentially even an investor in the company. The two recently announced a deal where OpenAI could end up taking a 10% stake in AMD.

Advanced Micro Devices' data center growth outlook, MI350/MI400 product impacts, China risks, and valuation vs. Nvidia. Click here to find out why AMD is a Buy.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the Most Promising AI Stocks to Buy Right Now. On October 15, analyst Matt Bryson from Wedbush lifted the price objective on the company’s stock from $190 to $270,

The chipmaker posted record revenue of $9.25 billion, marking a 36 per cent year-over-year increase, with a non-GAAP EPS of $1.20.

AMD stock also got a boost from bullish macroeconomic news. Inflation came in lower than expected last month. AMD stock popped today following news that International Business Machines sees uses for the company's chips in quantum computing applications.

In addition to ongoing successes with processors, AMD is now selling more Radeon graphics cards again. However, the stock is falling again, likely due to Amazon.

AMD isn't as focused on AI computing hardware as its peers are. AMD already trades at an expensive valuation. Furthermore, AI hyperscalers are starting to design their own chips in collaboration with Broadcom, creating another fierce competitor for AMD.

Share prices of Advanced Micro Devices ( AMD +2.67%) soared to new highs recently on news of a transformative deal to supply chips for ChatGPT maker OpenAI. The surge in the share price comes ahead of the company's upcoming third-quarter earnings report, expected on Nov. 4.

Baird’s Tristan Gerra maintained an ‘Outperform’ rating for the stock and raised the price target to $300 from $240. ・Retail sentiment toward AMD stock shifted to ‘neutral’ by early Wednesday, following the bearish mood observed a day prior.