Key Highlights

● AMD shares traded near $615.32 on Tuesday, September 29, 2026, after closing at $607.87 the previous session.

● The chipmaker agreed to buy World Labs, the AI startup founded by Fei-Fei Li, in an $8.2 billion all-stock deal.

● AMD will issue about 13 million shares, and the deal is expected to close by the end of 2026.

● Li becomes AMD's executive vice president and chief scientist, reporting to Chief Executive Lisa Su.

Advanced Micro Devices, Inc. (NASDAQ:AMD) rose on Tuesday, September 29, 2026, after the chipmaker announced a major AI acquisition. AMD agreed to buy World Labs, the artificial intelligence startup founded by computer scientist Fei-Fei Li, in an $8.2 billion all-stock deal, and the shares traded near $615.32, up from Monday's close of $607.87.

Terms and Leadership

AMD will pay for World Labs with about 13 million of its own shares, resulting in only modest dilution for existing shareholders. The deal is expected to close by the end of 2026. Li becomes executive vice president and chief scientist at AMD, reporting directly to Chief Executive Lisa Su. Su said building the compute platforms for the next generation of AI requires a deep understanding of how models are evolving, and that Li's team brings exceptional research leadership and model expertise.

Why World Labs Matters

For AMD, the acquisition brings model research expertise in-house. Understanding how AI models are built and how they are changing can help a chip designer tailor its hardware to future workloads. Paying in stock rather than cash lets AMD preserve its cash while giving World Labs' owners a stake in AMD's future.

Chip Stocks Shine

AMD's gain came on a strong day for semiconductors. The U.S. chip index climbed, and the main semiconductor exchange-traded fund was among the best-performing sector funds. Applied Materials (NASDAQ:AMAT) surged and Arm Holdings (NASDAQ:ARM) jumped. A leaked Anthropic IPO prospectus, as reported, showed a valuation target above $2 trillion and 12-fold revenue growth in 2025, and Nvidia's $150 billion buyback announced on Monday remained in focus.

The Index Picture

The Nasdaq-100 edged higher to 30,339.33 on the chip rally, even as the S&P 500 slipped 12.85 points to 7,670.84 and the Dow Jones Industrial Average fell 131.59 points to 51,349.92. The Nasdaq Composite ended nearly flat at 26,797.54. The 30-year Treasury yield reached its highest level since 2002, and the 10-year touched its highest in roughly two decades.

A Chief Scientist Joins the Chip Race

Chicago Fed President Austan Goolsbee cautioned that expectations of productivity gains from AI create a high danger of overheating now, a note of caution against the day's AI enthusiasm.