Advanced Micro Devices (AMD) recently announced a significant agreement with Oracle, marking its second major AI chip sale in consecutive weeks. This partnership has already had a positive impact on AMD’s stock price.
AMD and Oracle: Partnership Overview
Oracle Cloud Infrastructure plans to leverage AMD’s Instinct graphics processing units (GPUs) to create an artificial intelligence supercluster. The initial deployment is set to begin in the third quarter of 2026, with an impressive rollout of 50,000 GPUs. This collaboration is expected to expand further in 2027 and beyond.
The late 2026 deployment will utilize AMD’s Instinct MI450 Series GPUs. This agreement continues a longstanding partnership between AMD and Oracle, which began in 2024 when Oracle integrated AMD Instinct MI300X processors into its operations. Currently, Oracle employs AMD Instinct MI355X GPUs.
Enhanced Capabilities for Oracle Customers
Forrest Norrod, AMD’s Executive Vice President and General Manager for Data Center Solutions, emphasized the advantages of this collaboration. He stated that Oracle customers will benefit from powerful new capabilities for training, fine-tuning, and deploying advanced AI systems. The combined power of AMD’s GPUs and Epyc CPUs, along with AMD Pensando networking, enhances Oracle’s offerings.
Recent Contracts and Stock Performance
Last week, AMD entered another significant deal, supplying OpenAI with 6 gigawatts of AMD GPUs over multiple years. This contract begins with an initial delivery of 1 gigawatt of MI450 Series GPUs, scheduled for the latter half of 2026.
In response to these developments, AMD’s stock experienced a modest increase, trading at $218.43. On October 6, following the announcement of the partnership with OpenAI, AMD’s stock broke through a key resistance level of $186.65, indicating a breakout in market performance. Additionally, AMD and Oracle are featured on the Investor’s Business Daily (IBD) Tech Leaders list, showcasing their prominence in the semiconductor industry.
- Key Dates:
- Initial Deployment: Q3 2026
- Start of OpenAI Contract: H2 2026
- AMD GPUs in Use:
- MI450 Series: Late 2026
- MI300X Processors: 2024
- MI355X GPUs: Current Usage
The recent surge in AMD’s stock and its strategic partnerships highlight the company’s growing influence in the AI and semiconductor sectors.
