Should You Buy AMD Stock Before Nov. 4

Key Points

• AMD supplies chips powering major products like the PlayStation 5 and Tesla’s infotainment systems.

• The company’s future growth depends heavily on its data center business, where it’s chasing Nvidia’s dominance.

• AMD reports Q3 2025 earnings on Nov. 4, and investors are eager for details about its multibillion-dollar OpenAI deal.

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AMD’s Rise and the Road Ahead

Advanced Micro Devices (NASDAQ: AMD) has more than doubled in 2025, driven largely by excitement over its new partnership with OpenAI — a deal valued at up to $90 billion. The agreement will see OpenAI deploy six gigawatts of AMD’s data-center GPUs by 2030.

This announcement cemented AMD as a serious contender in the artificial-intelligence hardware race. But with the company set to release its third-quarter results on Nov. 4, investors must decide whether it’s worth buying shares now — or waiting for more clarity.

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The Battle for Data Center Dominance

AMD’s chips already power some of the world’s most recognizable consumer electronics, but Wall Street’s focus has shifted squarely to the AI-driven data-center market. Here, AMD is locked in fierce competition with Nvidia (NASDAQ: NVDA) — the clear industry leader.

To narrow that gap, AMD is rolling out its most advanced GPUs yet: the MI355X, built on its new Compute DNA (CDNA) 4 architecture. These chips deliver up to 35× the performance of the previous MI300X generation, offering 40% more AI inference throughput at the same cost.

It’s an impressive leap — enough to attract massive interest from cloud providers like Oracle, which is reportedly building a GPU cluster with over 130,000 MI355X units.

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Looking to 2026: Project Helios

AMD isn’t slowing down. The company plans to launch the MI400 series in 2026, paired with a new Helios AI data-center rack that combines custom hardware and software for seamless AI training and inference.

According to CEO Lisa Su, this next-generation system could deliver up to 10× the performance of current chips — bringing AMD closer than ever to Nvidia’s cutting-edge “Blackwell Ultra” and forthcoming “Rubin” GPUs. OpenAI’s first deployments of Helios systems with MI450 chips are scheduled for late 2026.

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The OpenAI Deal: Big Numbers, Big Risks

In Q2 2025, AMD reported $7.7 billion in total revenue, with $3.2 billion coming from its data-center unit — its fastest-growing division. The OpenAI deal could expand that dramatically.

Analyst Ian Cutress estimates it will take 3 to 6 million MI450 GPUs to meet OpenAI’s 6-GW goal, generating roughly $90 billion in revenue over five years.

However, the agreement comes with a twist:

• OpenAI can buy up to 160 million AMD shares at $0.01 each if it meets specific milestones.

• Full vesting depends on OpenAI purchasing all 6 GW of chips and AMD’s share price exceeding $600.

If OpenAI later sells those shares, it could realize $96 billion — more than the deal’s nominal value — meaning AMD’s success could lead to major shareholder dilution.

This structure suggests OpenAI doesn’t currently have $90 billion in cash but still wants access to next-generation GPUs. For AMD, the agreement ensures a long-term customer, even if it sacrifices some future equity.

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Valuation: Impressive Growth, Expensive Stock

AMD trades around $264 per share with a market cap of $419 billion, giving it a P/E ratio of 73.3, far above Nvidia’s 52.3.
That valuation assumes substantial earnings growth from its AI business — growth that might not fully materialize until 2026 or later.

With OpenAI’s rollout still months away and uncertainty around funding, investors chasing short-term gains may find the stock priced for perfection. But those with a long-term horizon (3–5 years) could see this as an entry point into a company rapidly transforming itself into an AI powerhouse.

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Bottom Line

Should you buy AMD before Nov. 4?
If you’re looking for short-term gains, probably not. The valuation is rich, and near-term volatility around earnings could lead to a pullback.

But for long-term investors betting on the AI revolution, AMD remains one of the most compelling plays in the semiconductor space — a company bridging the gap between innovation and opportunity.