AMD shares pop as Microsoft expands its AI chip partnership
AMD gained Monday after Microsoft said it will use AMD Helios systems, while analysts pointed to a wider chip rebound and hopes for more AI customer news.
By Sal Moretti · Money Reporter
2 min read
Advanced Micro Devices shares jumped 4% on Monday after the chipmaker announced a broader artificial-intelligence partnership with Microsoft, adding fresh heat to a stock already getting help from a rebound across semiconductor names.
AMD said Microsoft plans to use its Helios solutions for inference work tied to frontier models, Azure AI services and customer applications. The companies did not disclose financial terms or how much equipment Microsoft intends to deploy.
The announcement puts AMD deeper inside one of Big Tech’s biggest AI buildouts. In a company release, Microsoft Chief Executive Satya Nadella said customers want AI infrastructure suited to many kinds of work, including training, inference, data preparation, search and reinforcement learning.
The stock move was not only about Microsoft. Baptista Research analyst Ishan Majumdar told MarketWatch that AMD’s Monday rally also reflected a broader comeback in semiconductor and AI-related shares.
Still, Majumdar said the Microsoft expansion carries weight because of its scope. He noted that Microsoft is looking beyond Helios and expects to use a range of AMD products, according to MarketWatch.
Majumdar described the deal as a commercial endorsement for AMD’s wider AI-infrastructure push. In his view, it helps show that AMD can offer a fuller platform rather than challenge Nvidia only chip by chip.
There are limits to what investors can know right now. Majumdar pointed out that the companies did not reveal dollar amounts or deployment volumes, and he noted that Microsoft still works with multiple chip suppliers.
Because of that, Majumdar said Monday’s reaction looked more like confidence in AMD’s strategy and possible future revenue than a clear boost to near-term earnings.
Another thread is adding to the buzz. Morningstar analyst Brian Colello told MarketWatch that investors may be reacting to reports from SemiAnalysis that AMD could soon name Anthropic as a customer.
AMD has a chance to add detail this week. The company is set to hold its annual Advancing AI event on Thursday in San Francisco, where Colello said AMD could share more information about its partnerships.
The timing matters for investors watching the AI chip race. AMD has been trying to build a bigger role in AI computing, while Nvidia remains the dominant name in the market. The Microsoft deal gives AMD another high-profile customer tie-up, even if the near-term revenue impact remains unclear.
This story draws on original reporting from MarketWatch.