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AMD Shares Surge 30% After Multibillion-Dollar Deal With OpenAI

1. AMD announced a multibillion-dollar deal with OpenAI, increasing stock by 30%. 2. OpenAI to acquire 6 gigawatts of AMD AI chips starting in 2026. 3. The partnership could yield tens of billions in revenue for AMD. 4. OpenAI's deal with AMD positions it against Nvidia's dominance in AI chips. 5. AMD's recent stock surge marks its largest gain since April 2016.

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FAQ

Why Very Bullish?

The partnership with OpenAI significantly strengthens AMD's competitive positioning, which could drive long-term profitability similar to Nvidia's growth after pivotal partnerships.

How important is it?

The deal marks a critical turning point for AMD, diversifying its market reach and enhancing its strategic position against Nvidia.

Why Long Term?

The revenue from the partnership will evolve as deployments progress, akin to how Nvidia benefited from expansions in AI demands over time.

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