AMD Scores Major AI Chip Sale With Oracle

"Leroy N. Soetoro" <[email protected]>
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https://www.investors.com/news/technology/amd-stock-oracle-ai-chip-sale/

Advanced Micro Devices (AMD) on Tuesday scored its second major AI chip 
sale in as many weeks, announcing a deal with Oracle (ORCL). AMD stock 
rose on the news.

Oracle Cloud Infrastructure will use AMD Instinct graphics processing 
units, or GPUs, for an artificial intelligence supercluster. It will start 
with an initial deployment of 50,000 GPUs in third-quarter 2026 and expand 
in 2027 and beyond.

The late 2026 deployment will use AMD Instinct MI450 Series GPUs. The deal 
continues a long-standing, multigeneration collaboration between AMD and 
Oracle. That collaboration started with Oracle's use of AMD Instinct 
MI300X processors in 2024 and extends to Oracle's current use of AMD 
Instinct MI355X GPUs.

"With our AMD Instinct GPUs, Epyc CPUs (central processing units), and 
advanced AMD Pensando networking, Oracle customers gain powerful new 
capabilities for training, fine-tuning, and deploying the next generation 
of AI," Forrest Norrod, executive vice president and general manager for 
AMD's Data Center Solutions Business Group, said in a news release.

Last week, AMD won a contract to supply OpenAI with 6 gigawatts of AMD 
GPUs over a multiyear, multigeneration period. It will start with 1 
gigawatt of AMD Instinct MI450 Series GPUs in the second half of 2026.

AMD Stock Is A Recent Breakout
On the stock market today, AMD stock rose 0.8% to close at 218.09.

On Oct. 6, after the AMD-OpenAI news, AMD stock broke out of a cup base at 
a buy point of 186.65, according to IBD MarketSurge charts.

AMD stock is on the IBD Tech Leaders list, as is Oracle.


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