Any questions about the durability of the AI revolution can be set aside for today after Advanced Micro Devices (AMD) and ChatGPT operator OpenAI announced a deal to collaborate on the construction of AI data centers to be run on AMD chips.
AMD stock soared as much as 37.6% Monday, and semiconductor stocks, as represented by the iShares Semiconductor ETF (SOXX), were up nearly 4%. Nvidia (NVDA) was down more than 1%, its dominant position in the ongoing AI infrastructure buildout somewhat undermined.
