As the AI arms race accelerates, Advanced Micro Devices (NASDAQ: AMD) is gaining ground in a market long dominated by NVIDIA. Its recent deal with OpenAI adds weight to the view that AMD stock could still double in value. But this isn’t about taking share from NVIDIA (NASDAQ: NVDA)—analysts at Wedbush estimate demand is outstripping supply by ten to one, creating room for both companies to thrive. AMD’s opportunity lies in meeting a massive unmet need in the AI GPU market.
The critical takeaway is that OpenAI wants billions, tens of billions to be more precise, worth of MI450 GPUs. This is important because the MI450 lineup is explicitly tailored for AI workloads, features superior memory capacity suitable for inference, is more efficient, and is available at scale.
