Meta Description: AMD stock surges 24% after OpenAI’s massive chip order sparks optimism. Jefferies upgrades AMD to “buy” and sets a $300 price target, signaling new confidence in the AI chip leader.
AMD’s Stunning Comeback on Wall Street
Advanced Micro Devices (AMD) just made one of the biggest moves of the year. After a 24% surge in its stock price, analysts at Jefferies upgraded AMD from “hold” to “buy.” The upgrade came after the company’s groundbreaking partnership with OpenAI, the creator of ChatGPT, showing how fast AMD’s role in the AI revolution is growing.
Jefferies analyst Blayne Curtis admitted that this kind of quick turnaround is rare, saying, “We rarely do this.” The shift shows just how powerful AMD’s momentum has become as AI spending continues to accelerate worldwide.
How OpenAI’s Deal Changed AMD’s Outlook
The big driver behind this surge is OpenAI’s decision to buy up to 6 gigawatts (GW) of AMD chips — a deal that could bring in over $100 billion in potential revenue. According to AMD, each gigawatt could be worth “double-digit billions,” giving investors a reason to stay excited.
OpenAI isn’t just investing in AMD. It’s also partnering with Nvidia, Samsung, Hynix, and Oracle, signaling how critical advanced chips are for powering AI systems and data centers across the world.
AMD vs. Its Competitors in the AI Chip Race
| Company | Market Focus | AI Partnerships | Analyst Price Target |
|---|---|---|---|
| AMD | High-performance AI chips | OpenAI | $300 (Jefferies) |
| Nvidia | AI GPU market leader | OpenAI, major cloud firms | $470 (average) |
| Intel | Data centers & CPUs | Limited AI deals | $150 (average) |
The table clearly shows AMD closing the gap with Nvidia, while Intel still lags behind in the AI hardware race.
Analysts Divided, But AMD Leads the Narrative
Even with Jefferies raising its price target to $300, not everyone agrees. Goldman Sachs continues to project a $150 target, while Deutsche Bank and Wedbush also remain below AMD’s closing price of $203.71.
Still, the numbers speak for themselves — AMD’s 24% gain was a 6-standard-deviation move, one of the strongest stock reactions this year. Interestingly, this wasn’t even AMD’s biggest jump in 2025, as it rose 23.8% on April 9 earlier this year.
What This Means for AMD and the AI Market
The partnership between AMD and OpenAI marks a turning point for the company. It shows how quickly AMD is transforming from a competitor in the chip industry to a key player in the AI era.
With global AI demand rising and major firms racing to secure computing power, AMD’s future looks stronger than ever. The company’s growth story isn’t just about chips anymore — it’s about leading the next phase of artificial intelligence innovation.
