An unusually timed options trade on Advanced Micro Devices (NASDAQ: AMD) has seen an investor turn a $6 million bet into an estimated $18 million profit in just two days.
On October 2, options tracker Cheddar Flow flagged a massive purchase of more than $6 million in out-of-the-money AMD call options, describing the move as “super unusual.”
Less than 48 hours later, OpenAI announced a 10% strategic stake in AMD as part of a wide-ranging partnership to supply advanced AI chips and computing infrastructure.
The news triggered a sharp rally in AMD’s share price, sending the previously speculative call options soaring more than 300% and netting the short-term windfall.
The remarkable timing of the trade, occurring immediately before a major market-moving announcement, has fueled speculation of possible insider activity, though no evidence has yet been presented.
Drivers of AMD rally
AMD’s rally follows growing excitement over its new partnership with OpenAI. Under the multi-year deal, AMD will supply up to 6 gigawatts of GPU compute power, starting with 1 GW, to support OpenAI’s next-generation AI infrastructure.
The agreement also grants OpenAI a performance-based warrant to acquire up to 10% of AMD’s shares, signaling strong confidence in AMD’s AI strategy.
Notably, the partnership quickly shifted Wall Street’s outlook on AMD. Jefferies upgraded the stock to ‘Buy’ and raised its target to $300, calling the OpenAI deal a transformative move that strengthens AMD’s position in the AI chip market.
Other analysts echoed the optimism, viewing the agreement as a key step toward narrowing the gap with Nvidia (NASDAQ: NVDA), the current industry leader.
Despite the optimism, analysts caution that AMD’s biggest test will be execution. Fulfilling the six-gigawatt commitment, sustaining performance at scale, and meeting tight production deadlines will determine whether the company can maintain its current momentum.
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