Key Highlights

● AMD shares reached about $615.32 on Tuesday, September 29, 2026, after ending Monday at $607.87.

● Lisa Su said building the next generation of AI compute requires a deep understanding of how models evolve.

● AMD is paying $8.2 billion in stock, issuing about 13 million shares, with closing expected by year end.

● Nvidia finished roughly flat a day after announcing a $150 billion buyback, while chip stocks broadly rebounded.

Lisa Su has a clear message about where the chip business is heading. Announcing the acquisition of World Labs on Tuesday, September 29, 2026, the chief executive of Advanced Micro Devices, Inc. (NASDAQ:AMD) argued that building the best AI hardware now requires an inside view of the software it runs. AMD's shares reached about $615.32, after ending Monday at $607.87.

Su's Argument

Su said building the compute platforms for the next generation of AI requires a deep understanding of how models are evolving. The logic reflects a shift in the chip industry. For years, chipmakers mostly designed faster processors and let software developers work out how to use them. In the AI era, hardware and models are increasingly designed together, since the size of models, the way they process data and the tasks they perform all shape which chip performs best.

What AMD Gains

By buying World Labs, AMD gains a team that builds cutting-edge AI models. Su said Li's team brings exceptional research leadership and model expertise. Fei-Fei Li becomes executive vice president and chief scientist, reporting to Su. That knowledge can inform how AMD designs its next generations of AI accelerators and the software tools that support them.

The Deal in Numbers

AMD is paying $8.2 billion in stock, issuing about 13 million shares, which results in only modest dilution for existing shareholders. The transaction is expected to close by the end of 2026.

Competing in the AI Chip Race

Nvidia (NASDAQ:NVDA) remained in the spotlight after announcing a $150 billion buyback on Monday, and its shares finished roughly flat. Chip stocks broadly rebounded, with Applied Materials (NASDAQ:AMAT), Arm Holdings (NASDAQ:ARM) and Marvell Technology (NASDAQ:MRVL) posting strong gains. A leaked Anthropic IPO prospectus, as reported, pointed to $518 billion of planned compute and infrastructure obligations, a spending plan that underscores the demand chipmakers are chasing.

The Index Picture Around the Deal

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.

Hardware and Models Designed Together

Chicago Fed President Austan Goolsbee cautioned that expectations of productivity gains from AI create a high danger of overheating now.