Key Takeaways
- Wall Street analysts highlighted Super Micro Computer, Dell Technologies and Astera Labs as some of the stocks that could gain from an OpenAI deal with Advanced Micro Devices.
- Several analysts suggested AMD’s deal could be taken as a positive signal for the semiconductor sector and AI trade broadly, though they pointed to some of AMD’s networking partners as more direct beneficiaries.
Advanced Micro Devices (AMD) has a number of partners that could be set to benefit from its big deal with OpenAI, according to Wall Street analysts.
The ChatGPT maker committed to buying several generations of AMD’s AI chips, sending shares of the semiconductor firm up 24% yesterday and another 4% on Tuesday. The announcement also boosted shares of Super Micro Computer (SMCI), Astera Labs (ALAB), Dell Technologies (DELL), and others that have business with AMD.
J.P. Morgan analysts said in a note to clients Tuesday that they see current AMD partners and AI server makers Supermicro, Dell, and Hewlett Packard Enterprise (HPE) as poised to gain from the deal. They also highlighted Arista Networks (ANET) and Sanmina (SANM), which earlier this year agreed to buy ZT Systems’ Data Center Infrastructure manufacturing business from AMD and became a preferred manufacturing partner as part of the agreement.
Why This Matters for Investors
Several analysts suggested AMD’s deal could be taken as a positive signal for the semiconductor sector and AI trade broadly, though they pointed to some of AMD’s networking partners as more direct beneficiaries. The deal underscores the wide-ranging impact of the surge in AI demand on companies and stocks, with analysts likening the AI boom to a rising tide that lifts all boats.
“While the announcements till date from OpenAI have largely focused on tight partnerships with semiconductor companies, we expect to see similar partnerships with Hardware and Networking companies as critical to scaling infrastructure,” J.P. Morgan said.
Citi analysts said they see AMD’s OpenAI agreement as presenting a positive read-through for memory chip maker Micron Technology (MU) and Astera Labs as well. Astera, which supplies connectivity solutions for AI data centers and counts Nvidia (NVDA) and AMD as customers, saw its stock pop 10% Monday, before pulling back Tuesday.
