Advanced Micro Devices stock jumped more than 13% on Monday, kicking off a week in which the chipmaker is wearing two hats at once: supplier to Anthropic and investor in the artificial intelligence company ahead of its public listing. Both roles surfaced in Anthropic's IPO filing, which detailed the placement participants and supply commitments.

The shares added roughly 5% in early Tuesday trading before cooling to about 2% higher by midday. On Wednesday, the stock opened at $515.21, up 1.3%, leaving it well below its 52-week high of $658.52.

Anthropic Filing Reveals $2.5 Billion Commitment

According to Anthropic's IPO filing, AMD will buy about $2.5 billion of Class N stock as part of a $26 billion private placement. Google, Nvidia, Broadcom, Micron, Microsoft and Taiwan Semiconductor Manufacturing Co. are participating in the same placement, which is expected to close alongside the IPO. The participant list pairs AMD with much of the chip industry — including GPU rival Nvidia — as well as cloud providers Google and Microsoft, and the closing timeline ties the investment's completion to the listing itself.

The $2.5 billion commitment is not a new bet. It falls under a July pledge by AMD to purchase up to $5 billion of Anthropic stock, a pledge announced alongside a hardware supply deal, and it covers roughly half of that earlier ceiling. Under that agreement, Anthropic plans to deploy up to 2 gigawatts of AMD Instinct MI450 Series GPUs on Helios rack-scale systems, with the first gigawatt expected to start in the first half of 2027.

Anthropic launched its IPO roadshow on Tuesday. The offering covers 825 million Class A common shares at an expected $70 to $78 apiece, and the company has applied to list on the Nasdaq under the ticker ANT. The near-term calendar for AMD's dual role now runs from the offering's pricing within its range to the first MI450 gigawatt slated for the first half of 2027.

Oppenheimer Upgrade Sets $600 Target

Monday's jump had a distinct catalyst. Oppenheimer upgraded AMD to Outperform from Perform and set a $600 price target. Analyst Rick Schafer projects that data center revenue will grow 135% in 2027, and he expects AI GPU sales to pass EPYC server CPU revenue next year.

AMD also said its fifth-generation EPYC chips will power the host setup for Google Cloud's new TPU 8tx system, which offers hardware-enforced confidential computing.

Third-quarter results had already come in strong. Earnings reached $2.09 per share against a $1.95 estimate, on revenue of $13.38 billion, up 44.7%, while data center sales grew 97% in the quarter. Schafer's 135% projection for 2027 would run ahead of even that quarterly pace. Some coverage has pointed to falling free cash flow and rising inventory as risks despite the headline beat.

Nvidia Slips as Board Probes CEO

Nvidia fell nearly 6% around midday Tuesday. Its board launched an independent probe into CEO Jensen Huang over an extramarital affair with a suspected Chinese agent, and Huang remains in his role.

The S&P 500, Dow Jones and Nasdaq all traded lower on Tuesday. Analysts note, however, that money moving between chip stocks is not the same as customers switching suppliers.

Wall Street carries a Moderate Buy consensus on AMD, with an average price target of $642.47, above Oppenheimer's new $600 target.