AMD Shares Surge as OpenAI Partnership Fuels Record Rally

Advanced Micro Devices (AMD) has decisively outperformed its major rival Nvidia in the 2025 trading year and is seamlessly continuing this momentum into the new period. The catalyst for the latest surge is a landmark collaboration with OpenAI, a deal that is reshaping the competitive dynamics within the semiconductor industry. As the stock achieves unprecedented highs, the company is solidifying its strategic position as an indispensable infrastructure partner for artificial intelligence development.

The primary force behind AMD's recent acceleration is a multi-year strategic agreement with OpenAI. The chipmaker has secured a deal to supply 6 gigawatts of GPU capacity for the ChatGPT creator's next-generation AI infrastructure. AMD's Chief Executive, Lisa Su, characterized the partnership as a pivotal move for what she described as the world's most ambitious AI expansion.

Market analysts view this agreement as far more than a simple revenue driver; it is considered a major technical endorsement. The substantial order validates that AMD's accelerator chips present a genuine alternative to Nvidia's market dominance. This reassessment by the market is clearly reflected in the share price, which closed at a record high of $263.70 on Friday.

Should investors sell immediately? Or is it worth buying AMD?

Financial Milestones on the Horizon

Investor attention now turns to February 3rd, when AMD is scheduled to release its financial results for the fourth quarter of 2025. Analysts have recently revised their estimates upward, now anticipating earnings per share of $1.32. This figure would represent an increase of approximately 21 percent compared to the prior-year period. Revenue is projected by the market to jump to $9.65 billion. Given the stock's current valuation, which carries a forward price-to-earnings ratio of 36, these quarterly figures will be crucial for fundamentally justifying the elevated share price.

Data Center Business Drives Sustained Growth

The data center segment has unequivocally evolved into the core engine of AMD's business. In the third quarter of 2025, revenue from this division climbed 22 percent year-over-year. This growth is being propelled by robust demand for fifth-generation EPYC server processors and the MI300 series accelerators, whose ramp-up has exceeded initial expectations.

The forward outlook remains optimistic. Management has projected an annual growth rate exceeding 60 percent for data center revenue in the coming years. This forecast is bolstered by new products recently unveiled at CES 2026. The upcoming MI400 series is designed to gain traction, particularly in exascale computing, through significant leaps in efficiency. This product line aims to expand AMD's market share beyond the largest hyperscale customers.