Nvidia CEO Is Surprised by AMD’s OpenAI Equity Move: What’s in Store for NVDA Stock?

In a surprising twist in the artificial intelligence (AI) chip wars, Nvidia (NVDA) CEO Jensen Huang expressed astonishment over rival Advanced Micro Devices’ (AMD) decision to grant OpenAI up to a 10% ownership stake as part of their newly announced multibillion-dollar partnership. Speaking on CNBC’s “Squawk Box,” Huang described the move as “imaginative” and “unique,” but said he was surprised that AMD would “give away 10% of the company before they even built” the next-generation product. The announcement triggered a strong rally in AMD’s stock, while Nvidia shares gained modestly, reflecting investor interest in how this development may affect competitive dynamics.

AMD stock is up 94% year-to-date, while Nvidia is up 44.5%, compared to the broader market gain of 16%. While Nvidia’s dominance remains unshakeable, Huang’s reaction has sparked widespread speculation about what this unusual equity-for-chips strategy means for Nvidia. Let’s find out.