Copyright Benzinga
Chipmaker Advanced Micro Devices Inc.’s (NASDAQ:AMD) CEO, Lisa Su, highlighted the significance of the company’s multi-billion-dollar, multi-year partnership with OpenAI, saying that it could help the company’s AI business gain traction. AMD is among today’s weakest performers. View the charts here. $100 Billion In Revenue From OpenAI Deal During the company’s third-quarter earnings call on Tuesday, Su said that the deal with “significantly accelerate” AMD’s data center AI business, while potentially generating “over $100 billion in revenue over the next few years.” The partnership includes a massive deployment of AMD’s Instinct GPUs, totaling 6 gigawatts of compute power. According to Su, “The first gigawatt of MI450 series accelerators [is] scheduled to start coming online in the second half of 2026,” helping position it as a key player in the AI compute arms race. See Also: Market Wants More AMD Datacenter Growth Despite OpenAI Win, Must Answer Nvidia’s $500 Trillion Orders, Says Daniel Newman “The partnership establishes AMD as a core compute provider for OpenAI and underscores the strength of our hardware, software, and full-stack solutions strategy,” she said. AMD and OpenAI are set to collaborate across multiple fronts, including future hardware, software, and system-level roadmaps, as this partnership moves forward. Stock Dips Despite Beat-And-Raise Quarter AMD released its third-quarter results on Tuesday, reporting $9.25 billion in revenue, up 36% year-over-year, and ahead of consensus estimates at $8.74 billion. The company reported a profit of $1.20 per share, which was again ahead of analyst consensus at $1.16, according to Benzinga Pro. The chipmaker also raised its fourth-quarter guidance, now expecting $9.6 billion in revenue, compared with analyst estimates of $9.16 billion. Despite posting a beat-and-raise quarter, AMD’s shares were down 3.7% on Tuesday, closing at $250.05, and are down another 3.19% overnight. The stock scores high on Momentum, Growth and Quality in Benzinga’s Edge Stock Rankings, with a favorable price trend in the short, medium and long-term. Click here for deeper insights. Read More: AMD Hit With Two Lawsuits From Adeia Alleging Massive Patent Violations Ahead Of Q3 Earnings Photo Courtesy: jamesonwu1972 On Shutterstock.com
