After enduring its worst monthly performance in years during November, marked by a steep 23% decline, Advanced Micro Devices (AMD) investors may finally have cause for optimism. A potential strategic alliance with artificial intelligence leader OpenAI is injecting fresh hope into the market, suggesting a possible reversal of fortune for the chipmaker.
A Potential Revenue Catalyst
The shift in sentiment stems from an analysis by financial firm CLSA, which revealed details of a prospective “blockbuster deal.” According to the report, AMD has secured an agreement to supply a massive “6 gigawatt” capacity of chips directly to OpenAI, the creator
This move represents far more than a public relations win. CLSA analysts estimate the transaction could boost AMD’s revenue forecasts for 2026 and 2027 by a substantial 21 to 48 percent. Such an outcome would help alleviate concerns that AMD is being squeezed out of the AI race dominated by Nvidia and Google’s proprietary chips. In response to this potential, CLSA significantly raised its price target for AMD shares, although it maintained a “Hold” rating for the time being.
Technical Challenges Persist
Despite the emerging optimism, the stock’s technical picture remains challenging. Currently trading at 191.12 euros, the share price still sits just below the key 50-day moving average of 196.24 euros. For a sustained trend reversal to take hold, buyers will need to push the stock decisively above this resistance level.
Should investors sell immediately? Or is it worth buying AMD?
Gaining Ground in a Competitive Market
The news provides a welcome relief for shareholders following a difficult November, when fears of an impending “AI winter” drove the sharp sell-off. Supporting the improved outlook are recent market share figures: AMD increased its portion of the discrete graphics card market to 7% in the third quarter. While Nvidia continues to dominate with over 90% market share, AMD’s growth demonstrates that its new RDNA and CDNA chip architectures are gaining traction.
Strategic Investments Add Momentum
Further positive developments are bolstering the investment case. Marvell Technology has announced its intention to acquire Celestial AI, a startup backed by AMD. This deal highlights the growing value of AMD’s strategic investments in the field of optical interconnect technology.
Market participants are now eagerly awaiting official confirmation regarding the specifics of the rumored OpenAI agreement. The central question remains: will these reports materialize into a signed contract, or will they remain unconfirmed speculation? The answer could define AMD’s trajectory in the high-stakes artificial intelligence sector.
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