AMD Stock Soars 20% on OpenAI Chip Deal; Bitcoin Hits New Record
Markets are abuzz with news of a significant deal between AMD and OpenAI, sending AMD's stock skyrocketing over 20% in premarket trading. Meanwhile, Fifth Third Bank is acquiring Comerica in a deal worth approximately $10.9 billion. Bitcoin has also reached a new record, trading above $125,000 over the weekend.
The multi-year contract between AMD and OpenAI is set to supply AI chips with a total computing power of six gigawatts, starting in 2026. This deal could potentially bring AMD revenues in the double-digit billion dollar range. Investors are optimistic, with the Dow and S&P 500 hitting records and extending their winning streak. Year-to-date, the S&P 500 is up 14.2%, the Dow is up 9.9%, the Nasdaq is up 18%, and the Russell is up 11%.
Looking ahead, investors are keeping an eye on Bitcoin's price and various economic indicators. This week, they will be watching for a government shutdown settlement, Crude Oil Inventories, Mortgage Applications, Initial Claims, and the University of Michigan Consumer Sentiment reports. Additionally, Constellation Brands' earnings report may draw interest due to decreasing alcohol consumption among younger people.
AMD's stock surge, driven by the OpenAI chip deal, signals investors' confidence in the company's future prospects. As markets continue to perform strongly, investors remain focused on key economic indicators and corporate earnings, such as Constellation Brands', to guide their decisions.
