The global stock market is still under the spell of AI, and OpenAI is at the center of it all. At its latest developer event, the company mentioned names like Figma, HubSpot, and Salesforce, and those stocks instantly surged. Even Mattel briefly spiked after being linked to ChatGPT integration. Yet the biggest winner was Advanced Micro Devices. AMD stock exploded by more than 20% after the company announced a groundbreaking partnership with OpenAI. The deal gave OpenAI the right to acquire up to 10% of AMD, sending the chipmaker’s market value soaring by more than $60 billion. Analysts say this proves one thing: in today’s market, anything tied to OpenAI or AI momentum has the power to ignite stocks, no matter the fundamentals.
AMD’s Big AI Bet Raises the Stakes
AMD’s CEO Lisa Su dismissed concerns of overhype, saying critics of AI are “thinking too small.” The new pact with OpenAI will deliver up to 6 gigawatts of GPU power through AMD’s upcoming MI450 chips starting in 2026. Su says the deal could generate tens of billions of dollars in revenue and launch a decade-long “supercycle” for AI investment. OpenAI also secured a stake in AMD, deepening the financial and strategic ties. Wall Street is cautiously optimistic, with analysts pointing out the stock warrant structure could align incentives and boost AMD’s valuation further. The race with Nvidia is far from over, but AMD has just made its boldest move yet. This signals that the AI arms race is not slowing down—it’s accelerating.
AI Economy Turns Into a Closed Circle
The partnership highlights the increasingly circular nature of the AI economy. Nvidia is investing capital, AMD is supplying chips, and Oracle is building infrastructure—all to serve OpenAI’s insatiable demand. Market watchers warn that this “band of brothers” dynamic could create risks if any single player falters. For now, though, the synergy is driving stock prices to record levels. The S&P 500 and Nasdaq both notched new highs, powered largely by AI-fueled rallies. The excitement recalls Nvidia’s market-moving effect last year, when just a mention of its Blackwell processors pushed software stocks higher. The AI boom is lifting a select group of companies, but it is also raising questions: is this the beginning of a durable transformation, or the makings of a bubble?
Japan Rides the AI Wave to Record Highs
In Asia, Japan is reaping the rewards of Wall Street’s AI-fueled rally. The Nikkei 225 hit record highs for a second straight day, supported by strong gains in chip-related stocks. Advantest, Tokyo Electron, and Renesas all advanced, tracking the surge in AMD and AI demand. Japan’s broader market is also buoyed by political shifts, with the ruling party’s new leader positioning to become the country’s first female prime minister. However, bond yields are climbing to multi-decade highs, signaling deeper shifts in Japan’s financial landscape. Meanwhile, the yen weakened further against the dollar, underlining the cost of diverging monetary policies. Despite these headwinds, Japan’s stock market momentum shows how closely global investors are watching AI’s impact across sectors.
Europe Faces Political Strain as France Shakes Confidence
Across Europe, the picture looks more complicated. Stocks are set for a mixed open, with France once again in the spotlight. Prime Minister Sebastien Lecornu’s resignation after less than a month in office rattled markets, dragging the CAC 40 down more than 1% on Monday. French banks were hit especially hard, with Societe Generale, BNP Paribas, and Credit Agricole all losing more than 3%. The crisis comes just as Europe struggles to keep pace with the AI-driven boom lifting U.S. and Japanese markets. Investors will also be watching fresh data from Germany and the U.K., alongside trade figures from France, for further clues on Europe’s resilience. For now, Europe lags behind the AI wave, weighed down by political instability and weaker momentum.
Outlook: AI at the Center of a Global Market Shift
The global stock market story this week is clear: AI is the dominant force. OpenAI’s influence is so strong that its partnerships reshape valuations across the tech sector. AMD’s bold deal confirms that this is not just hype but the start of massive capital commitments. Japan is benefiting from the rally, while Europe is distracted by political turbulence in France. For investors, the message is that AI remains the single biggest driver of market sentiment worldwide. Yet the debate continues: is this a supercycle that will reshape industries for a decade, or the early stages of a bubble? The next earnings season, especially from Big Tech, may offer the first real answers.
