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.

In fact, I'm going to make the bold prediction that AMD will have a higher market cap than Broadcom (NASDAQ: AVGO) by the end of 2030.

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. is heading into its third-quarter earnings report with powerful seasonal tailwinds, a surging AI narrative, and fresh Wall Street optimism.

Advanced Micro Devices (AMD) stock has risen by 62.8% over the course of 21 trading days. The gains are driven in part by the company’s major deal with ChatGPT maker OpenAI, to supply tens of thousands of its GPU chips for 6 gigawatts of computing capacity over the next five years.

The bullish investor sentiments surrounding this partnership have led AMD stock to surge. Analysts at HSBC raised AMD’s price target from $185 to a Street-high $310, while keeping a “Buy” rating on the shares.

While semiconductor giant Advanced Micro Devices has been a powerful performer this year, a true test for AMD stock awaits ahead of Q3 earnings.

Key Takeaways Advanced Micro Devices posted record quarterly results that topped analysts' estimates on strong sales of its data center chips.The chipmaker's fourth-quarter outlook was also well above the analyst consensus.