KUALA LUMPUR, July 31 (Bernama) -- Bursa Malaysia ended higher on Friday as investors continued to accumulate blue-chip stocks in line with stronger performances across most regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.50 points to 1,724.90 from yesterday’s close of 1,720.40. The benchmark index opened 0.83 of a point higher at 1,721.23, and moved between 1,715.67 and 1,730.12 throughout the day. The broader market was positive with gainers outpacing losers 707 to 402, while 547 counters were unchanged, 1,085 untraded and 56 suspended. Turnover expanded to 3.03 billion units valued at RM3.56 billion from 2.49 billion units valued at RM2.25 billion on Thursday.
Key Takeaway:
$Advanced Micro Devices (AMD.US)$ inked a multi-year AI chip supply deal with $OpenAI$, potentially worth tens of billions in annual revenue, and offering the ChatGPT creator the option to acquire up to 10% of AMD’s equity. The news sent AMD shares surging over 23% in pre-market trade, putting them on track for their highest level since March 2024.
Deal Overview
Scope: Supply of hundreds of thousands of AMD AI GPUs—equivalent to 6 gigawatts of compute capacity—rolled out from 2H 2026.
Flagship hardware: OpenAI to build a 1GW AI facility using AMD’s upcoming MI450 series chips in 2026.
Financial impact: AMD expects tens of billions of dollars annually and over US$100 billion in cumulative revenue over four years from OpenAI and related ecosystem partners.
Strategic milestone: Marks a significant diversification of OpenAI’s hardware base beyond $NVIDIA (NVDA.US)$ and a strong validation of AMD’s competitive positioning in the AI accelerator market.
Equity Option Details
OpenAI granted a warrant for up to 160 million AMD shares at a nominal US$0.01 per share.
Vesting tied to key milestones, including:
Initial MI450 chip shipment in 2H 2026.
Progressive stock price targets up to US$600/share.
AMD currently has 1.62 billion shares outstanding, valued at US$267.2 billion (LSEG data).
Management Commentary
“This deal is transformative — not just for AMD, but for the entire industry,” said Forrest Norrod, AMD Executive VP.“Other AI pioneers will follow OpenAI’s lead,” added Mat Hein, AMD’s Chief Strategy Officer.OpenAI CEO Sam Altman noted that the agreement will help the company “build sufficient AI infrastructure to meet its explosive growth trajectory.”
Industry Implications
For AMD:
Strengthens its status as the main challenger to Nvidia in AI compute.
Establishes long-term visibility for revenue and margin expansion.
Could boost FY26–29 earnings forecasts significantly if execution aligns with milestones.
For OpenAI:
Reduces dependence on Nvidia amid global GPU supply tightness.
Complements ongoing custom silicon development with $Broadcom (AVGO.US)$.
Market Reactions
| Stock | Latest | % Chg | Remark |
|---|---|---|---|
| AMD (AMD.US) | Pre-Mkt | +23% | Highest since Mar 2024 |
| Nvidia (NVDA.US) | — | -2% | Slight dip on competition |
| Broadcom (AVGO.US) | — | -3% | Profit-taking on chip diversification |
Analyst Take (Moomoo / CGS View)
We view this as a game-changing catalyst for AMD’s long-term AI revenue mix.
Strengthens confidence in AMD’s MI series chips and AI software stack.
Likely to narrow valuation gap with Nvidia, given the multi-year order visibility.
Reiterate bullish bias on semiconductor and AI infrastructure plays.
Trading Implication:
Expect sustained momentum in AI semiconductor stocks and data infrastructure names (AMD, SMCI, NVDA, AVGO).
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