Advanced Micro Devices Inc. (NASDAQ: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.

Also Read: US-China Trade Truce, Trump’s Middle East Deals Spark Wall Street Rally: This Week In Markets

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

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.

Also Read: Best AMD Stock Rally In 2 Years Gets A Buyback Boost

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

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

Read Next:

Nvidia’s Key Differentiators Include Its Ability To Expand Its Addressable Market: Analyst

Photo: Shutterstock