##  [# AMD–OpenAI Deal Sends Semiconductor ETFs Soaring](/sections/features/amd-openai-deal-sends-semiconductor-etfs-soaring) 

 

# AMD–OpenAI Deal Sends Semiconductor ETFs Soaring

 

 

AMD’s blockbuster deal with OpenAI sent chip stocks surging and gave semiconductor ETFs fresh fuel.



 

 

 

 

 [![sumit](/sites/default/files/styles/author_image_icon/public/2023-03/Sumit_0.png?itok=SO-7S5SH "sumit")](/authors/sumit-roy) 

[By Sumit Roy ](/authors/sumit-roy)

 Oct 06, 2025

 Edited by: ETF.com Staff

 

 

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Semiconductor ETFs continued their relentless march higher Monday after shares of [**Advanced Micro Devices (AMD)**](/stock/AMD) skyrocketed on news of a major partnership with artificial intelligence leader OpenAI.  
  
The [**VanEck Semiconductor ETF (SMH)**](/SMH) jumped as much as 3.5%, while the [**iShares Semiconductor ETF (SOXX)**](/soxx) rallied up to 4.5%, thanks in large part to a surge of as much as 38% in AMD shares.

## OpenAI Bets on AMD Chips

Before the market opened, AMD and OpenAI announced a multi-year agreement under which OpenAI will deploy up to 6 gigawatts worth of AMD chips to power its AI infrastructure. The first 1-gigawatt deployment of AMD’s Instinct MI450 GPUs is expected in the second half of 2026.  
  
The deal is a major validation of AMD’s data center GPUs from one of the world’s most demanding AI customers. Until now, AMD has been a distant second to [**NVIDIA (NVDA)**](/stock/NVDA), which controls more than 80% of the AI chip market.   
  
AMD’s share remains in the single digits, but this partnership could begin to narrow that gap.

 
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## Stock Warrants Add Incentive

As part of the agreement, AMD has granted OpenAI warrants to purchase up to 160 million AMD shares, representing nearly 10% of the company, at a nominal cost. Those warrants will vest gradually, starting with the first gigawatt deployment, and won’t fully vest unless AMD’s stock price triples from current levels.  
  
In other words, AMD is incentivizing OpenAI’s endorsement by offering a potential ownership stake, while OpenAI is signaling confidence in AMD’s chips by committing to use them at scale.   
  
If the partnership succeeds, it could be a win-win, with AMD gaining demand and credibility in AI computing, and OpenAI gaining diversification away from NVIDIA along with access to the vast compute power it needs to meet surging AI demand.  
  
Still, the agreement depends on OpenAI’s ability to generate sufficient revenue or raise fresh capital to fund its ambitious infrastructure buildout.

## Deal-Making Spree

OpenAI has been on a deal-making spree to secure AI infrastructure. Last month, the company announced a separate partnership with NVIDIA, under which NVIDIA could invest up to $100 billion in OpenAI to build 10 gigawatts of AI data centers using NVIDIA chips.  
  
OpenAI has also committed to spending tens of billions of dollars with Oracle, its key cloud partner, and maintains deep ties with its original backer and major shareholder Microsoft.  
  
OpenAI is also just one player, albeit the most visible one, in the global race to build AI infrastructure. Tech giants like Microsoft, Alphabet, Meta, and Amazon are pouring billions into similar efforts.

## ETF Exposure

SOXX holds a 7.4% weighting in NVIDIA and 7% in AMD. It also has exposure to other AI winners such as Broadcom, which designs custom chips for tech giants, and Micron, a leading supplier of high-bandwidth memory essential for training large AI models.  
  
Meanwhile, SMH has 18.8% of its portfolio in NVIDIA, 10% in TSMC, which manufactures most advanced AI chips, and 8% in Broadcom. AMD accounts for 4.6% of the fund.  
  
Both ETFs have been standout performers amid the AI boom. SMH is up 42% year to date, while SOXX has climbed 35%, compared to a 20% gain for the [**Invesco QQQ Trust (QQQ)**](/qqq).  
  
![SMH-SOXX-QQQ](/sites/default/files/inline-images/SMH.png)

## Spending Surge Continues, For Now

For now, the AI spending frenzy shows no sign of slowing, and semiconductor ETFs remain key beneficiaries. But some analysts caution that the staggering dollar amounts being thrown around—hundreds of billions in projected data center spending—could be signs of overheating.  
  
Skeptics have been wrong so far, as the AI buildout keeps exceeding expectations. The AMD–OpenAI tie-up adds yet another leg to the rally, and underscores how central chipmakers are to the AI investment story.



 

 

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 [ Sumit Roy Senior ETF Analyst ](/authors/sumit-roy) 

 

 

  Sumit Roy is the senior ETF analyst for etf.com and author of (Don't) Invest Like a Pro. He creates a variety of content for the platform, including…   [View Bio](/authors/sumit-roy)

 



 

 


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