US Stocks Hit Record Highs As AMD Deal Fuels AI Investments

NEW YORK, NY — US stocks surged to record highs on October 6, 2025, driven by a rally in chipmakers following Advanced Micro Devices Inc.’s (AMD) partnership with OpenAI. This deal is seen as a significant boost to the artificial intelligence sector, which has been a key driver of the current bullish market.

The S&P 500 rose for the seventh consecutive day, marking its longest winning streak since May. AMD shares jumped approximately 30%, while a key semiconductor index gained 4%. In contrast, fellow chipmaker Nvidia Corp. saw a decline in its stock price.

Tesla Inc. also drove gains among major tech companies, as social media hints suggested an upcoming product release. The recent AMD-OpenAI deal follows other substantial investments in AI by firms such as Nvidia, which announced a potential $100 billion investment in OpenAI last month.

Matt Maley from Miller Tabak remarked, “The animal spirits surrounding the AI phenomenon are getting yet another boost.” He indicated that concerns about the US government shutdown are being largely sidelined, with traders focusing more on positive earnings forecasts and possible interest rate cuts from the Federal Reserve.

Long-term Treasury bonds were affected negatively, while gold prices soared close to $4,000 per ounce and Bitcoin reached record levels. Oil prices increased as OPEC+ agreed to raise production modestly.

Despite the excitement, some analysts warn that a speculative bubble in AI might be looming, reminiscent of the tech bubble of the late 1990s. Veteran strategist Ed Yardeni noted that discussions about an AI bubble have risen significantly, as evidenced by Google search trends.

“We are counting on a better-than-expected earnings season to boost the rally,” Yardeni added, citing that the upcoming earnings reports from big tech companies could outperform estimates.

Goldman Sachs strategists predict a strong earnings season for US companies, attributing a solid economic outlook and significant AI investments as reasons for elevated expectations. Analysts from Morgan Stanley and Citigroup also echoed optimism about strong earnings growth and broader market trends.

Bespoke Investment Group highlighted that US stocks are poised for continued strength, citing an 82% chance for the S&P 500 to rise further in the next two months, based on historical data.

As companies invest heavily in AI resources, there are ongoing discussions about market sustainability and future economic conditions. Brahm Kenwell from eToro supported the notion of a resilient consumer sector boosting stock prices, despite government uncertainties.

Craig Johnson of Piper Sandler emphasized a need for caution, noting that while the AI-related stock sector is performing well, some stocks may be overextended in their recent gains. “A brief consolidation or shallow pullback would be welcomed to set up better risk-reward opportunities,” he said.