AI Frenzy Drives Wall Street to Record Highs as AMD Soars 23.7% on OpenAI Deal
Wall Street has been experiencing a record-breaking streak, driven largely by the frenzy surrounding artificial intelligence. The S&P 500 index reached an all-time high today, climbing 0.4%.
Advanced Micro Devices (AMD) soared by 23.7% after announcing a significant deal with OpenAI. The agreement involves AMD's chips being used for AI infrastructure, sparking investor confidence. The S&P 500 index rose by 24.49 points to 6,740.28, while the Dow Jones industrial average dipped slightly by 63.31 points to 46,694.97. Meanwhile, the Nasdaq composite rose by 161.16 points to 22,941.67, also reaching a record high.
OpenAI, founded in 2015 by Sam Altman, Elon Musk, Greg Brockman, and Ilya Sutskever, has seen Sam Altman leading as CEO since 2019. The company could own up to 160 million shares of AMD if certain milestones are met in their deal. This partnership is expected to boost AMD's position in the AI market.
In other news, Verizon Communications fell by 5.1% after replacing its CEO with Dan Schulman, a former CEO of PayPal. Conversely, Comerica jumped by 13.7% following an all-stock deal valued at $10.9 billion, in which Fifth Third Bancorp agreed to buy it. Tesla also rose by 5.4% after hinting at a possible product unveiling on Tuesday via social media. Nvidia, the most valuable stock on Wall Street, slipped by 1.1% following AMD's announcement, given its heavy weight on the S&P 500 index.
Today's market movements reflect the ongoing enthusiasm for AI and tech stocks, with AMD and OpenAI's partnership being a key driver. Despite some fluctuations, major indices continue to set new records, indicating a strong overall market performance.
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