DOE $1B Supercomputers Deal Boosts AMD Stock

The U.S. Department of Energy has launched a $1 billion public–private partnership with Advanced Micro Devices to build two AMD-powered AI-optimized supercomputers, Lux and Discovery, at Oak Ridge National Laboratory to speed fusion research, molecular-level drug modeling including cancer, nuclear power and grid modernization, and national-security workloads. The systems are co-developed with Hewlett Packard Enterprise, Oracle Cloud Infrastructure and Oak Ridge National Laboratory, with DOE/ORNL providing hosting, facilities and power while industry partners supply hardware, software and capital and will share portions of compute output. Lux will use AMD Instinct MI355X accelerators and is expected to be operational within six months (early 2026 in some reports), delivering roughly three times the AI capability of current supercomputers. Discovery will use AMD’s forthcoming MI430-series parts with delivery targeted in 2028 and operation planned by 2029. DOE and AMD say the machines could compress research timelines — potentially producing practical fusion pathways within two to three years and accelerating drug-discovery modeling — and the deal, one of AMD’s largest government contracts, lifted AMD’s shares. Separately, reports highlighted strong test results for advanced algorithms on AMD hardware, underscoring industry momentum behind AMD’s chips for cutting-edge computing.