US stock markets began the trading day on a positive note this Monday, extending the previous week's upward momentum. The rally was primarily driven by AMD 's artificial intelligence partnership with OpenAI , which helped overshadow worries about an extended US government shutdown.
At market opening, the Dow Jones Industrial Average edged up by 17.8 points, reaching 46,776.04, a 0.04% increase. The S&P 500 advanced by 18.1 points to 6,733.86, marking a 0.27% gain, whilst the Nasdaq Composite climbed 113.8 points to 22,894.352, representing a 0.50% rise.
Advanced Micro Devices (AMD) and OpenAI announced a multi-year partnership to develop AI data centers, a deal AMD says could generate tens of billions of dollars in new revenue over the next five years. AMD share prices soared, rising from the previous close of $164.67 to Monday opening of $226.32, a surge of around 37 per cent, after the announcement of its multi-year partnership with OpenAI, following the news, which involves supplying OpenAI with six gigawatts of GPUs critical for AI development.
The move allows OpenAI to diversify its semiconductor supply beyond US rival Nvidia, which signed a $100 billion equipment contract with the AI company in late September. Analysts note that AMD faces competition from Nvidia, China’s Huawei, and tech giants Amazon and Google. As part of the agreement, AMD will issue OpenAI 160 million warrants, financial instruments that can be converted into shares under specific conditions.
This surge comes despite economic concerns remain over the shutdown of the US government since October 1.
At market opening, the Dow Jones Industrial Average edged up by 17.8 points, reaching 46,776.04, a 0.04% increase. The S&P 500 advanced by 18.1 points to 6,733.86, marking a 0.27% gain, whilst the Nasdaq Composite climbed 113.8 points to 22,894.352, representing a 0.50% rise.
Advanced Micro Devices (AMD) and OpenAI announced a multi-year partnership to develop AI data centers, a deal AMD says could generate tens of billions of dollars in new revenue over the next five years. AMD share prices soared, rising from the previous close of $164.67 to Monday opening of $226.32, a surge of around 37 per cent, after the announcement of its multi-year partnership with OpenAI, following the news, which involves supplying OpenAI with six gigawatts of GPUs critical for AI development.
The move allows OpenAI to diversify its semiconductor supply beyond US rival Nvidia, which signed a $100 billion equipment contract with the AI company in late September. Analysts note that AMD faces competition from Nvidia, China’s Huawei, and tech giants Amazon and Google. As part of the agreement, AMD will issue OpenAI 160 million warrants, financial instruments that can be converted into shares under specific conditions.
This surge comes despite economic concerns remain over the shutdown of the US government since October 1.
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