Advanced Micro Devices shares advanced on Tuesday, building on the prior session's sharp gains, after Anthropic's regulatory filing disclosed that the chipmaker will buy roughly $2.5 billion of the AI developer's Class N shares as part of a broader private placement.
AMD stock rose about 5% in morning trading, following a jump of more than 13% on Monday. The shares pared those gains by midday and were up roughly 2% at the time of writing.
What the Anthropic filing revealed
Anthropic's IPO paperwork showed that AMD will participate in a $26 billion private placement alongside several of the world's largest technology companies, including Google, Nvidia, Broadcom, Micron, Microsoft and Taiwan Semiconductor Manufacturing Co. The placement is expected to close in conjunction with Anthropic's listing.
The $2.5 billion figure is not an entirely new commitment. It falls under an existing arrangement announced in July, when AMD agreed to purchase up to $5 billion of Anthropic shares as part of a hardware supply agreement. Under that deal, Anthropic will deploy as much as 2 gigawatts of AMD's Instinct MI450 Series GPUs through its Helios rack-scale systems, with the first gigawatt of capacity expected to begin deployment in the first half of 2027.
Anthropic launched its IPO roadshow on Tuesday, offering 825 million Class A shares at an expected price range of $70 to $78 each. The company has applied to list on the Nasdaq under the ticker symbol ANT.
Momentum from Monday's upgrade
Tuesday's move extends a rally that began Monday, when Oppenheimer upgraded AMD to Outperform from Perform and set a $600 price target. Analyst Rick Schafer pointed to accelerating demand for AMD's data center processors and AI accelerators, projecting that data center revenue could grow 135% in 2027.
The brokerage expects AMD's EPYC server processors, together with its MI455 AI chips and Helios systems, to drive the next phase of growth. It also anticipates that AI GPU sales will overtake EPYC server CPU revenue next year.
Separately, AMD said its fifth-generation EPYC processors will power the host infrastructure for Google Cloud's new TPU 8tx system, which provides hardware-enforced confidential computing for sensitive AI workloads. The arrangement broadens AMD's role beyond its own GPUs, positioning its server CPUs as a component of systems built around Google's custom AI chips.
Nvidia weakness in the background
AMD's gains also came as Nvidia shares remained under pressure. The company's board has launched an independent investigation amid controversy surrounding CEO Jensen Huang, who retains his position. Nvidia fell nearly 6% around midday, while the S&P 500, Dow Jones and Nasdaq were all lower.
As Nvidia's primary competitor in AI chips, AMD may attract investors seeking an alternative exposure to the sector. The stock's move was closely watched by investors adjusting positions through online trading platforms.
This article is for informational purposes only and does not constitute financial advice.
