How AMD Stock Beat the Market (and Nvidia) in 2025

1 hour ago 2

Anders Bylund, The Motley Fool

Thu, January 15, 2026 astatine 6:23 AM CST 4 min read

AMD banal roseate 77.3% successful 2025, astir doubling the S&P 500's instrumentality and outpacing Nvidia successful the past 3 months.
OpenAI signed a multi-year woody to bargain 6 gigawatts of AMD Instinct AI accelerators, representing a $120 cardinal gross accidental implicit the adjacent 5 years.
The woody signals that AMD tin vie with Nvidia for high-end AI workloads.
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Shares of AMD (NASDAQ: AMD) roseate 77.3% successful 2025, according to information from S&P Global Market Intelligence. In the aforesaid period, the S&P 500 (SNPINDEX: ^GSPC) marketplace scale gained 16.4% and AMD rival Nvidia (NASDAQ: NVDA) jumped 38.9% higher.

AMD's terms illustration stayed adjacent to Nvidia's (and acold supra the broader market's) done the archetypal 9 months of past year, indicating continued capitalist involvement successful the artificial quality (AI) roar that started successful November of 2022. But AMD took a coagulated year-to-date pb successful October arsenic a cardinal AI subordinate committed to buying a batch of AMD's Instinct chips implicit the adjacent fewer years.

On Oct. 6, ChatGPT developer OpenAI unveiled a multi-year declaration that volition enactment 6 gigawatts of AMD Instinct AI accelerators successful OpenAI's information centers implicit the adjacent 5 years. The woody could besides marque OpenAI a large proprietor of AMD stock, arsenic it includes banal warrants for up to 160 cardinal AMD shares that volition vest (convert into communal shares) arsenic AMD delivers its gigawatts of number-crunching hardware. That would beryllium astir 10% of AMD's stock.

The shipments volition commencement successful the 2nd fractional of 2026 and ramp up to larger volumes and next-generation Instinct chips successful 2027. AMD CEO Lisa Su called the statement "a existent win-win," and OpenAI CEO Sam Altman highlighted AMD's high-performance products.

AMD's banal skyrocketed 26% that good Monday, rising 41% successful 1 week. OpenAI's hardware deals person market-moving power.

There are a fewer important quirks successful AMD's OpenAI deal.

One AMD Instinct paper draws astir 1,000 watts of power. Thus, 6 gigawatts' worthy of these AI accelerators should impact astir 6 cardinal processors. The existent procreation of Instinct MI350 cards is priced successful the vicinity of $20,000 per card, and the improved MI 450 bid that OpenAI is buying (and aboriginal generations successful a 5-year deal) whitethorn transportation a higher price. So AMD's gross accidental works retired to $120 cardinal oregon more. Again, it's implicit 5 years but inactive a important maturation driver.