Why Did Advanced Micro Devices Stock Soar 9.4% Today?
Key Points
Oracle announced Tuesday it intends to purchase tens of thousands of AMD's next-generation chips.
This is the latest in a series of major deals announced for the Nvidia rival.
- 10 stocks we like better than Advanced Micro Devices ›
Shares of Advanced Micro Devices (NASDAQ: AMD) jumped on Wednesday, finishing the day up 9.4%. The spike came as the S&P 500 and the Nasdaq Composite gained 0.4% and 0.6%, respectively.
The chipmaker's stock is continuing to surge after Oracle announced it intends to deploy 50,000 AMD chips by the end of 2026.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Oracle will use AMD
Oracle, an increasingly central player in AI cloud computing, will purchase 50,000 of AMD's next-generation MI450 chips to power its servers. The chips are designed to compete head-to-head with those of Nvidia.
This is the latest in a string of announcements that make clear that AMD has a much more substantial role to play in AI than it has up to this point. Just this month, OpenAI and AMD announced a major deal that could see the ChatGPT creator owning roughly 10% of the company in exchange for purchasing a large number of AMD chips.
Image source: Getty Images.
Speaking to AMD's growing role, Karan Batta, senior vice president of Oracle Cloud Infrastructure, said she expects customers "to take up AMD very, very well -- especially in the inferencing space."
AMD looks to be capitalizing on the AI opportunity, and if AI demand holds, it could do very well. While the stock is anything but cheap, it's a good pick given its growth prospects.
Should you invest $1,000 in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $655,428!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,103,559!*
Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 189% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of October 13, 2025
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and Oracle. The Motley Fool has a disclosure policy.
Recommended Articles
