AMD Stock Hits Record High on Back of Major AI Contracts
AMD stock reached an all-time high of $633.91 on October 2, pushing the company's market value above $1 trillion. The surge reflects strong GPU orders from major clients like OpenAI and Oracle, signaling a shift in the competitive landscape dominated by Nvidia. AMD's shares gained $18.18, a 2.95% increase, with its intraday high surpassing $645. This marks an 180% climb in 2026 alone.
The rally is backed by substantial contracts. Oracle committed to deploying 50,000 AMD Instinct MI450 GPUs starting in Q3 2026, while OpenAI plans a 6-gigawatt buildout using the same platform, with the first gigawatt set for deployment in the second half of 2026. AMD even issued OpenAI a warrant to buy up to 160 million shares, demonstrating confidence in these orders.
For years, Nvidia has dominated the data-center GPU market, but AMD's deals with OpenAI and Oracle mark a shift. These companies are no longer treating AMD as a backup option but as a primary supplier. Nvidia isn't standing still, however, with its own plans to deploy 10 gigawatts of systems and invest up to $100 billion. The dynamic now allows hyperscalers to negotiate better terms between the two suppliers.
The broader chip-stock story in October 2026 includes Intel, up over 220% this year, and Cerebras, which has seen its stock drop by about 20% in early October. AMD's success is attributed to turning speculative demand into concrete contracts, a contrast to Cerebras's struggles with customer concentration and unlocked share supply.
The $633.91 close reflects a repricing based on real commitments from OpenAI and Oracle. The next challenge for AMD is delivering the MI450 GPUs at the contracted volumes. If successful, the record could continue to rise; if not, the newly achieved trillion-dollar market cap may prove premature.