"Advanced Micro Devices Inc. took this rocket ride on Monday, as the company's stock soared, briefly boosting its market capitalization by roughly $100 billion at an intraday high, after the chipmaker signed a deal with OpenAI that could lead to billions of dollars in revenue. AMD's shares extended gains into a second day, rising as much as 7.5% in early trading on Tuesday."
"This follows a 36% jump in Oracle Corp. shares last month, which added $255 billion to the software firm's market value in a single session, after it gave blockbuster guidance for its cloud business, including an agreement with the ChatGPT operator worth $300 billion over five years."
""If any one of these deals falls through it has this domino effect downstream that I think is concerning," said Brian Mulberry, client portfolio manager at Zacks Investment Management Inc., which has about $12 billion in assets. "It reminds me of what happened with telecom back in the mid-nineties.""
OpenAI-related deals and guidance have driven dramatic intraday gains in major technology stocks, adding tens or hundreds of billions of dollars in market value within minutes. Advanced Micro Devices briefly gained roughly $100 billion in market capitalization after a deal tied to OpenAI, while Oracle surged 36%, adding $255 billion after cloud guidance and a five-year agreement linked to ChatGPT. Market professionals warn that if any large deals falter the effects could cascade through the supply chain. The concentration of top tech stocks—about 35% of the S&P 500—increases the potential severity of any unwind compared with 1999.
Read at Fortune
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