AMD Stock Surges Following Pre-FOMC OpenAI Agreement: Is a Computing Power Battle Looming for Crypto?
OpenAI has secured a multi-year agreement with AMD (NASDAQ: AMD) for six gigawatts of GPU capability to base level its upcoming AI models. It’s a groundbreaking development. The deal, announced on Monday, may generate tens of billions in revenue over the next five years, representing AMD’s most significant move towards competing with Nvidia’s supremacy in AI chips.
AMD and Nvidia will never truly be on the same level. NVIDIA might eventually produce an x86 processor that could be decent, but AMD is excelling in CPUs and may maintain this lead after the agreement. Intel, on the other hand, is likely to be left behind as they struggle to create new enterprise or consumer products.
AMD has joined the party pic.twitter.com/IP9ERC5NNy
— Not Jerome Powell (@alifarhat79) October 6, 2025
AMD’s stock surged +35% at opening, trading around $204, as investors recognized the deal’s potential long-term impact. The agreement allows OpenAI to obtain up to 160 million share warrants, approximately 10% of AMD’s shares, contingent upon meeting specific rollout objectives, according to regulatory filings.
If you’re contemplating whether to invest or long-term holding off, here’s what to consider:
DISCOVER: 20+ Next Crypto to Explode in 2025
Why Is Wall Street Placing Bets on AMD Instead of Nvidia?
AMD just provided OpenAI with 160 million shares for minimal cost to facilitate GPU transactions. We’re witnessing levels of financial sophistication that are risky in regions like China.
The agreement sent ripples through the markets. The S&P 500 rose to 6,740.28 and the Nasdaq Composite jumped to 22,941.67, both reaching new database highs. The Dow Jones Industrial Average experienced a slight decline due to weak consumer data.
This marks another event in the ongoing AI surge of 2025. Strategist Ed Yardeni has raised his year-end S&P forecast to 7,000, dubbing it a “slow-motion melt-up,” while Evercore ISI’s Julian Emanuel continues to project a uptrend 7,750 for 2026.
Nvidia dipped by just over 1%, yet few analysts on Wall Street anticipate the company’s long-standing crypto market leadership will vanish quickly. Instead, many see AMD emerging as a vital alternative supplier within the global AI framework.
DISCOVER: Next 1000X Crypto: 10+ Crypto Tokens That Can Hit 1000x in 2025
OpenAI’s Growing Chip Empire: Implications for Crypto
According to data from FRED, the output of semiconductor manufacturing in the U.S. rose +18.6% year-on-year by Q3 2025, primarily driven by the market demand for AI chips.
Additionally, Decentralized finance Llama indicates that blockchain-based cloud computing initiatives such as Render and Akash Protocol experienced a +30% increase in total value locked (TVL) during the same timeframe, illustrating a surge in decentralized computing alternatives due to the AI race.
Just a week before, OpenAI negotiated separate agreements with Samsung and SK Hynix to obtain high-bandwidth memory chips, following a month after Oracle’s stock rose +35% when they announced a new AI server contract with OpenAI. Taken together, these initiatives indicate a strategic move to rely less on Nvidia.
“OpenAI’s strategy to balance suppliers between AMD, Nvidia, and Asian partners is an intelligent risk management approach,” stated a semiconductor strategist at Baird.
Bitcoin
0.04%
BTC
BTC
Price
$124,368.11
0.04% /24h
Volume in 24h
$61.77B
Price 7d
, which has recently acted as a market fluidity indicator for tech speculation, is maintaining a position above $124,000, while gold hovers around $3,900, indicating that traders are balancing hedges against inflation.
Why the AI Investment Trend Shows No Signs of Slowing
Where do you stand, anon?
- I should have purchased Bitcoin
- I should have acquired ETH
- I should have invested in OPEN
- I should have bought AMD
Fortunately, given that AMD’s crypto market is 13 times smaller than Nvidia, there remains plenty of potential for growth.
While Nvidia continues to dominate the crypto market, AMD’s Instinct GPUs and CPUs have gained momentum recently due to competitive pricing and increased compatibility with OpenAI’s proprietary frameworks. Analysts at 99Bitcoins are currently waiting for a dip, but AMD certainly appears to have long-term value potential.
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Key Takeaways
- OpenAI has secured a multi-year agreement with AMD (NASDAQ: AMD) for six gigawatts of GPU capacity to price floor its next generation of AI models.
- Thankfully, with AMD’s market 13 times smaller than Nvidia there is still room to grow.
The post AMD Stock Erupts After Pre-FOMC OpenAI Deal: Is There a Computing Power War Coming For Crypto? appeared first on 99Bitcoins.
