Why is AMD stock rising?

Advanced Micro Devices, Inc. (NASDAQ:AMD) has recently become one of the notable stocks. On October 9, CNBC commentator Josh Brown evaluated the significant leap AMD experienced following its agreement with OpenAI. Brown expressed that he does not understand the practice of buying stocks based on short-term fluctuations.

Brown stated, "Who’s looking at these charts? Who's buying today? I can’t even imagine what the last buyer is thinking. Frankly, it looks tremendous, but doesn't anyone consider the chance of the market having 2 or 3 bad days? Half of that 43% could be wiped out. Companies with market values of hundreds of billions of dollars increase by 40% and 50% in a week. Yes, this is incredible activity. I’m not saying Advanced Micro Devices Inc (NASDAQ:AMD) doesn’t deserve this position; the issue is the speed at this point,” he remarked.

AMD shares surged after the company announced a multi-year agreement to supply AI chips for the creator of ChatGPT.

Macquarie Core Equity Fund commented in its investor letter regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) for the second quarter of 2025: "Advanced Micro Devices, Inc. (NASDAQ:AMD) designs and manufactures high-performance computing solutions for various markets such as central processing units (CPUs), graphics processing units (GPUs), gaming, data centers, and artificial intelligence. Although the company currently possesses a small market share among GPUs used for AI applications, we believe that by 2027, the company will have products that can compete with the market leader NVIDIA. Hyperscale customers with deep programming expertise may drive significantly larger revenue and profit increases for AMD than previously expected by deciding to dual-source high-quality chips in the near future."

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