New York, New York
— October 7, 2025

AMD kicked off the week with a huge rally — shares are up 30%, adding $70 billion in market cap and pushing the company’s valuation to roughly $343 billion. The catalyst? A major deal with OpenAI for AMD’s cutting-edge Instinct MI450 GPU, proving that AMD is now squarely competing at the top tier of AI hardware.

At Wall Street Game Notes, we’ve followed AMD closely, and this move highlights what we’ve been saying for months — Dr. Lisa Su’s leadership and AMD’s commitment to product-led growth are paying off. The company has invested heavily in R&D, and this deal validates those decisions.

With OpenAI expected to generate tens of billions in GPU demand for AMD over the next few years, this partnership could be transformative. For context, AMD’s annual revenue currently sits around $30 billion, meaning this single deal could double their revenue trajectory over time.

That said, investors should keep an eye on customer diversification risk. OpenAI is now AMD’s largest client, and if OpenAI stumbles or fails to monetize its innovation pipeline, which includes AgentKit, Sora 2, and rumored ChatGPT devices, AMD could face volatility.

For now, we like AMD’s position and see this partnership as a key inflection point that may attract even more enterprise AI customers. Nothing wrong with some profit taking here, but we think this could be the beginning of AMD’s next growth chapter.

Be good!