AMD Soars After Announcing OpenAI Deal

Wall Street rose to more records on Monday as excitement around artificial intelligence keeps driving the market.

• The S&P 500 rose 24.49 points, or 0.4%, to 6,740.28, a new all-time high.
• The Dow Jones Industrial Average fell 63.31 points, or 0.1%, to 46,694.97.
• The Nasdaq composite climbed 161.16 points, or 0.7%, to 22,941.67.

Advanced Micro Devices led the market and soared 23.7% after announcing a deal where OpenAI will use its chips to power AI infrastructure. As part of the deal, OpenAI could own up to 160 million shares of AMD if it hits certain milestones.

A frenzy around AI has been one of the main reasons Wall Street has been hitting record after record, though that's also raising worries that prices have potentially shot too high. Much of the furor around AI in the last couple of weeks has come from OpenAI, which has quickly grown into a $500 billion company, announcing deals with businesses around the world to develop more AI infrastructure. Another chip company, Nvidia, announced a deal last month where it would invest $100 billion in OpenAI as part of a partnership, creating criticism that the AI investment pipeline was beginning to appear like a circle. Nvidia slipped 1.1% following the AMD announcement.

Outside of tech, Comerica jumped 13.7% after Fifth Third Bancorp agreed to buy its rival in an all-stock deal valued at $10.9 billion, the AP reports. The combination would create the country's ninth-largest bank. Fifth Third's stock fell 1.4%. Tesla rose 5.4% after social media postings by the electric-vehicle maker hinted at a possible product unveiling coming on Tuesday. Verizon Communications fell 5.1% after the telecom replaced its chief executive. Dan Schulman, a director at the company and former CEO of PayPal, is taking over for Hans Vestburg.

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Elsewhere on Wall Street, trading was relatively quiet as the stock market continues to largely ignore the US government's shutdown. Past closures of the federal government have had minimal effect on the stock market or on the economy, and the bet on Wall Street is that something similar will happen again. The shutdown likely means delays for US economic reports scheduled for this week, though investors will have some earnings reports to comb through, including from Delta Air Lines, PepsiCo, and Levi Strauss.