As U.S. markets entered a shortened Thanksgiving week, Advanced Micro Devices (AMD) captured investor attention with a significant Wednesday rally. The chipmaker’s stock surged nearly 4 percent, decisively pushing through the psychologically important $200 threshold. This upward movement raises crucial questions about whether this marks the beginning of a sustainable recovery from November’s severe correction, which had seen shares decline by 23 percent.
Strategic Positioning Beyond the November Selloff
The recent market downturn was triggered by substantial news from technology giants. Reports emerged detailing discussions between Meta and Google concerning the potential adoption of Google’s proprietary Tensor Processing Units (TPUs) starting in 2027. This development sent shockwaves through the semiconductor sector, suggesting that major technology companies might increasingly bypass established suppliers like AMD and Nvidia in favor of custom-designed ASIC chips for their AI workloads.
However, financial analysts consider the market’s panic-driven reaction potentially overstated. The accelerating demand for artificial intelligence processing capacity continues to outpace the industry’s ability to supply it. Even as some hyperscale companies develop in-house solutions, the overall market expansion appears sufficient to support multiple successful competitors.
Market Share Gains Defy Expectations
Wednesday’s pre-market momentum originated from an encouraging industry report. Fresh data from Jon Peddie Research confirmed that AMD successfully expanded its footprint in the graphics processing unit market during the third quarter of 2025. The company’s market share reached 15 percent, representing a one percentage point increase over the previous quarter. While Intel conceded 0.8 percent and even market leader Nvidia experienced minor contraction, AMD demonstrated measurable progress.
These figures represent more than a statistical achievement. They directly counter pessimistic forecasts suggesting AMD would be left behind in the competitive artificial intelligence hardware race. Instead, the company is increasingly establishing itself as a viable “second source” for major data center operators—a strategic advantage in a market actively seeking alternatives to Nvidia’s dominant position.
Foundation Strengthened by OpenAI Partnership
A frequently underestimated element in AMD’s favor is its recently announced strategic partnership. During October, the semiconductor firm secured a monumental supply agreement with OpenAI. The arrangement commits AMD to deliver GPU capacity equivalent to approximately six gigawatts by the year 2030. This agreement not only guarantees substantial long-term revenue but firmly positions AMD as a credible provider for training cutting-edge artificial intelligence models.
This strategic development complements already impressive financial performance. The company recently reported record quarterly revenue of $9.25 billion, representing 36 percent year-over-year growth. Its data center business continues to expand dramatically, generating $4.3 billion in the third quarter alone. CEO Lisa Su has projected approximately 80 percent compound annual growth for the data center segment, reinforcing a fundamentally strong outlook.
Technical Hurdles and Future Resistance
With Wednesday’s recovery establishing a foothold above $200, market observers now focus on the next critical technical level. The $225 price point represents the next significant resistance zone, where substantial selling pressure previously emerged. The central question remains whether this recent upward movement signifies a temporary rally ahead of the holiday weekend or the initial phase of a more sustained recovery trend.
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AMD Stock: New Analysis – 28 November
Fresh AMD information released. What’s the impact for investors? Our latest independent report examines recent figures and market trends.
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AMD Stock: New Analysis – 28 November
Fresh AMD information released. What’s the impact for investors? Our latest independent report examines recent figures and market trends.
Read our updated AMD analysis…
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