Advanced Micro Devices Inc. ( AMD ) announced an expanded partnership with Red Hat Inc. Tuesday to boost artificial intelligence capabilities and modernize virtualization across hybrid cloud environments.

The collaboration integrates AMD’s high-performance computing hardware with Red Hat’s open-source platforms to support enterprise demand for scalable and cost-efficient AI solutions.

As part of the effort, AMD Instinct GPUs are now fully supported on Red Hat OpenShift AI, allowing developers to run both small and large language models on a single virtual machine. Recent tests using Microsoft Azure’s ND MI300X v5 instances showed improved efficiency and reduced infrastructure requirements.

Red Hat OpenShift Virtualization has also been validated for AMD EPYC CPUs to help organizations consolidate legacy virtual machines and container-based applications across on-premise, cloud, and hybrid environments. Supported systems include Dell PowerEdge, HPE ProLiant, and Lenovo ThinkSystem servers.

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Both companies emphasized that modernizing the current infrastructure can unlock the capacity needed for AI innovation at scale.

Recently, Advanced Micro Devices ( AMD ) announced a $3 billion deal to sell its U.S.-based data center infrastructure manufacturing business to Sanmina Corp. ( SANM ) . The transaction includes $2.25 billion in cash and a $300 million premium, split equally between cash and equity. The deal also establishes a long-term strategic partnership, with AMD receiving Sanmina ( SANM ) shares subject to a three-year lock-up.

AMD reached a 52-week high of $187.28 on July 9, 2024, and a 52-week low of $76.48 on April 8, 2025. The stock experienced a significant 39% decline from its peak in February to its trough in early April. Since then, it has rebounded over 30% from its April lows and is currently up approximately 5% year-to-date.

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Related ETFs: Global X Artificial Intelligence & Technology ETF ( AIQ ) , iShares Expanded Tech-Software Sector ETF .

Price Action: AMD shares are trading lower by 1.29% at $113.26 on Tuesday’s last check.

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