Analyst After Advanced Micro Devices (AMD)-OpenAI Deal: ‘Where’s This Capital Coming From?’

We recently published 10 Trending Stocks to Watch As AI Bubble Warnings Heat Up. Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the trending stocks.

Joseph Terranova, Senior Managing Director, Virtus Investment Partners, recently discussed Advanced Micro Devices Inc (NASDAQ:AMD) latest deal with OpenAI and market concerns about a potential AI bubble. The analyst said most of the major AI deals have OpenAI playing a central role and highlighted concerns about capital spending:

“We’re relying a lot on Open AI, aren’t we, in that spending. And we’re are relying on Open AI to spend trillions of dollars. And I think the question becomes, where’s this capital coming from? You can make the argument it’s coming from venture capital, debt markets, some unique type of financing. This spending that we seem reliant on from OpenAI. Obviously, it benefits Nvidia. You asked at the top of the show, what does the deal with Advanced Micro Devices Inc (NASDAQ:AMD) mean? Not very much. Nvidia is down 40 basis points on barely.”

Macquarie Core Equity Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its second quarter 2025 investor letter:

“Advanced Micro Devices, Inc. (NASDAQ:AMD) designs and manufactures semiconductors, including central processing units (CPUs), graphics processing units (GPUs), and other high-performance computing solutions for various markets like gaming, data centers, and AI. The company currently maintains a small market share for GPUs used for AI applications though by 2027, we believe the company will have product on par with the market leader, NVIDIA. Hyperscale customers with deep programming expertise may increasingly decide to dual-source high-end chips leading to much larger revenue and profit gains in coming years for AMD than investors currently expect.”

While we acknowledge the risk and potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.