Analysts Highlight Potential Stock Boost from AMD and OpenAI Partnership

Recently, Wall Street analysts have pointed out that stocks such as Super Micro Computer, Dell Technologies, and Astera Labs could gain from the recent deal between OpenAI and Advanced Micro Devices (AMD).

Many believe AMD’s collaboration may signal a positive trajectory for the semiconductor industry and the broader AI market. Still, some analysts think that certain network partners of AMD might see more immediate benefits.

AMD has a number of partners that stand to gain from this relationship. OpenAI has committed to purchasing several generations of AMD’s AI chips, which led to a spike in AMD’s stock, rising 24% in one day and another 4% subsequently. This surge also positively impacted the stock prices of Super Micro Computer, Astera Labs, Dell Technologies, and others associated with AMD.

According to a note from JPMorgan to clients, current partners in the AI server market, including Supermicro, Dell, and Hewlett-Packard Enterprise, are expected to profit from this collaboration. They also noted additional connections with Arista Networks and Sanmina, the latter having recently become a preferred manufacturing partner after acquiring ZT Systems’ data center infrastructure business from AMD.

While some analysts view the AMD-OpenAI partnership as a promising sign for the semiconductor sector as a whole, others emphasize that specific AMD partners might benefit even more directly. The agreement reflects a broader trend in AI demand that analysts suggest has the potential to uplift various companies and their stocks.

JPMorgan remarked, “While OpenAI’s announcements have mainly focused on deep partnerships with semiconductor companies, we anticipate similar alliances with hardware and networking firms will be crucial for infrastructure development.”

Meanwhile, Citi analysts consider the AMD-OpenAI deal to signal a positive forecast for memory chip manufacturers, particularly for Micron Technology and Astera Research Institute. Astera, which provides connectivity solutions for AI data centers, saw a substantial increase in stock before experiencing a decline shortly thereafter.