Advanced Micro Devices, Inc.'s (AMD) stock has been on a strong three-session winning streak, thanks to a landmark deal the company inked with artificial intelligence (AI) startup OpenAI, and early signals point to further gains. 

In the after-hours session, AMD's stock climbed 2.25% to $240.85, on top of its 11.37% rally in the regular session. Wednesday's gain was orchestrated by Nvidia (NVDA) CEO Jensen Huang, as his comments in a CNBC interview suggested that the AI momentum is continuing to accelerate. The Nvidia chief said demand for its Blackwell AI chip was“really, really high.” adding that“I think we're at the beginning of a new buildout, beginning of a new industrial revolution.”

OpenAI CEO Sam Altman also lifted sentiment while appearing on the a16z podcast, by hinting at more deals from OpenAI in the coming months. 

AMD's stock, which had trailed its peers Nvidia and Intel ahead of the OpenAI deal, has now taken the lead with a year-to-date gain of 95%, compared to Nvidia's 41% and Intel's 87%. Intel stock has experienced a resurgence since the start of September, driven by multiple external investments in the company and its ongoing turnaround initiatives.

AMD has gained 43% so far this week as investors and Wall Street analysts cheered the OpenAI deal. The gains have pushed the stock into extremely overbought territory (14-day RSI at 86). Analysts have upwardly adjusted their stock price targets, factoring in the deal, with a few who had remained on the sidelines now offering a bullish view.

On Stocktwits, retail sentiment toward AMD stock remained 'extremely bullish,' although rising further up in the territory, and the message volume on the stream was 'extremely high.'

Retail users have already set their sights on the $400 level, expressing a strong commitment to hold the stock.

Some blamed the follow-on gains on a potential short-squeeze. The short interest in the stock is at 2.60%, although off the year's peak of 3.70% seen in late January, according to Koyfin.

The next major catalysts for the stock are likely to be the company's third-quarter earnings report, tentatively due in late October, and its Financial Analyst Day, scheduled for Nov. 11. At the latter event, AMD's executive leadership team would discuss the company's strategy and growth opportunities, innovative product and technology roadmaps, and long-term financial plan.

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