AMD's Stock Surged 24% on Its OpenAI Partnership and Is Near an All-Time High. Is It Still a Buy?

AMD (NASDAQ: AMD) hasn't been the success story many investors hoped it could be. AMD is seen as an alternative pick to Nvidia, the current king of artificial intelligence (AI) computing. The thesis was that AMD could serve as a viable alternative to Nvidia's products, and maybe gain some market share if Nvidia's prices got too high.That thesis hasn't panned out, and the stock is just now approaching its all-time high established in early 2024. For reference, Nvidia's stock is up around 280% since the start of 2024, while AMD is up nearly 40% (at the time of this writing). However, those fortunes may be turning around. AMD recently announced a deal with OpenAI, taking up to a 10% stake in AMD in exchange for its chips. This caused the stock to surge 24% the following day, and is clearly a bullish sign for AMD that OpenAI is using some of AMD's chips to power its AI ambitions.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool