💻 OpenAI Picks AMD! Chase or Exit After 30% Jump?

Isleigh
10-07

This isn't just an AI headline — it's a structural shift.

OpenAI locking in AMD for a multibillion-dollar chip supply deal, with warrants to buy 10% of shares at $0.01, effectively cements AMD as the second pillar in the AI hardware ecosystem. That's massive strategic validation.

Still, traders should understand what's priced in. A 25–30% premarket jump likely reflects not just enthusiasm, but an entire quarter's worth of future optimism pulled forward. Short-term, we'll see profit-taking and rotational flow back to Nvidia, as funds rebalance their AI exposure.

Medium term (3–6 months), the real story begins. If AMD executes on 3-nanometer MI300 supply and demonstrates consistent margin expansion, its valuation multiple could rerate toward Nvidia's 2022 trajectory — that's roughly a $160–$180 fair-value band.

The OpenAI deal does more than add revenue; it adds credibility. Wall Street now treats AMD not as Nvidia's underdog, but as a strategic alternative.

Watch options volume and institutional flow this week. If AMD holds above $140 after Friday, that confirms accumulation, not speculation.

The AI war just became a duopoly — and AMD's finally armed.

Not a financial advisor here. Trade wisely, Comrades! 🚀

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# OpenAI Family Expanding: Is It A Blessing or A Curse?

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Comment（4）

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  • Wade Shaw
    ·10-09
    AMD’s OpenAI warrant + duopoly spot—$140 hold confirms real accumulation!
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  • Jo Betsy
    ·10-09
    25-30% premarket jump pulled Q4 optimism forward—profit-taking’s coming!
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  • Megan Barnard
    ·10-09
    Funds may rotate back to NVDA—won’t that pressure AMD short-term?
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  • AugusMax
    ·10-08
    This could be a game changer for AMD, but don't ignore potential volatility.
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