Although semiconductor giant Advanced Micro Devices Inc (NASDAQ:AMD) took the market by storm with a potentially landmark deal, the extreme enthusiasm toward artificial intelligence raises concerns about an unsustainable bubble. As such, last week saw AMD stock tumble into the red after what appeared to be an auspicious start to another stunning rally.
On balance, circumstances look very much favorable for Advanced Micro. Since the start of the year, AMD stock has gained nearly 78%. In the trailing month, the security is up over 35%. Much of the upswing centers on the company's multi-year deal with OpenAI, the maker of the popular chatbot ChatGPT. Under the terms of the agreement, the endeavor could potentially unlock $135 billion in revenue and mount a serious challenge to Nvidia Corp (NASDAQ:NVDA).
