OpenAI agrees to buy massive quantities of AMD chips. That demand boosts AMD’s revenue and stock price. OpenAI holds warrants that gain value as AMD’s stock rises.

The more valuable those warrants become, the more incentive OpenAI has to buy and deploy AMD hardware—fueling further AMD growth and stock gains.

It’s a circular incentive chain where success at one point amplifies success elsewhere. Orders drive stock price, stock price drives incentive, incentive drives more orders.

If any part of the cycle falters, say AMD’s chips underperform, markets cool, or OpenAI overextends, the feedback reverses.

Fewer deployments hurt AMD’s stock. OpenAI’s warrants lose value. Incentives to keep buying evaporate. Both companies growth narratives unravel.