Meta Description: AMD shares surge 24% after OpenAI’s massive chip deal sparks confidence. Jefferies raises AMD’s price target to $300, highlighting the company’s growing role in the AI chip market.
AMD’s Stock Surge Marks a Turning Point
Advanced Micro Devices (AMD) made headlines with a sharp 24% rise in its stock price, following news of a major collaboration with OpenAI — the company behind ChatGPT. The sudden growth led Jefferies analysts to upgrade AMD’s rating from “hold” to “buy,” showing strong confidence in the company’s AI-driven future.
Blayne Curtis, a lead analyst at Jefferies, admitted, “We rarely do this,” as the team shifted their stance after realizing the massive potential in AMD’s AI business. This change reflects not just an upgrade, but a new level of belief in AMD’s ability to compete at the top of the semiconductor industry.
The Power of the OpenAI Partnership
Jefferies’ new optimism comes after OpenAI announced its plan to purchase up to 6 gigawatts (GW) of AMD chips. Analysts estimate this deal could unlock over $100 billion in potential revenue for AMD, marking one of the most significant moments in its history.
Each gigawatt, according to AMD, could translate into double-digit billions of dollars — an opportunity that could reshape the company’s role in the AI chip market.
OpenAI’s partnerships don’t stop with AMD. It’s also working with Nvidia, Oracle, Hynix, and Samsung, signaling a global race for computing power to support the future of artificial intelligence.
AMD vs. Other AI Chip Leaders
| Company | Key Focus | Major Partnerships | Analyst Price Target |
|---|---|---|---|
| AMD | AI and data center chips | OpenAI | $300 (Jefferies) |
| Nvidia | AI GPU development | OpenAI, Google | $470 (average) |
| Intel | Server and general computing | Limited AI exposure | $150 (average) |
The comparison shows how AMD is quickly catching up to Nvidia, becoming a vital player in the fast-growing AI hardware industry.
Analysts React to AMD’s Momentum
While Jefferies lifted its price target to $300, other analysts remain cautious. Goldman Sachs, Deutsche Bank, and Wedbush all have targets below AMD’s latest closing price of $203.71, showing that not everyone is ready to jump on the bullish bandwagon just yet.
Still, the 24% rise marked one of AMD’s most significant trading days in 2025. MarketWatch even noted it as a 6-standard-deviation move, a statistical rarity that shows just how unexpected this surge was.
The AI Boom Is Just Beginning
The partnership with OpenAI highlights how AI demand is driving massive growth in the chip sector. With AMD now firmly part of that story, it’s no longer just chasing Nvidia — it’s creating its own path in the AI revolution.
For investors and tech watchers alike, AMD’s latest move is a clear sign that the battle for AI chip dominance is only heating up — and AMD is ready to play a leading role.