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Analyst on Advanced Micro Devices (AMD)-OpenAI Deal: ‘We Are Not As Worried About Circularity’

We recently published 10 Trending Stocks This Week. Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the trending stocks this week.

Vivek Arya, senior semiconductor analyst at Bank of America Securities, said in a recent program on CNBC that he is bullish on AMD and other semiconductor companies amid rising demand for compute. Arya also said he is not “worried” about the apparent “circularity” of deals in the AI industry.

“OpenAI is eating computing power like Pac-Man. You know, they have 800 million weekly active users, probably getting to a billion users by the end of the year. And this is within 3 years of them forming. It took Facebook 8 years to get to a billion users. And every one of the users that OpenAI has on their network is consuming a tremendous amount of tokens and computing capacity. So the company has to build out a lot of infrastructure, which it is doing with the help of cloud service providers, and for that it needs to partner with these leading semiconductor companies. Today, Nvidia is the incumbent. OpenAI has signed deals with Broadcom and now it has signed this deal with Advanced Micro Devices Inc (NASDAQ:AMD). But you know, it’s also important to realize the second point that OpenAI is going to be one of the many ecosystems that develops in this AI industry. You know, there’s going to be an ecosystem developed around Meta or Amazon or Google, right? The many different neoclouds that are forming. So this is going to be a broad, diversified industry with chip makers participating, which is why we are not as worried about the circularity of this. Because if you look at the total of the deals that OpenAI has signed with Nvidia and Advanced Micro Devices Inc (NASDAQ:AMD), they will probably end up being less than 5 or 10% of the overall deployment. So no, we are incredibly bullish about this buildout and I think companies like Nvidia, Broadcom, Advanced Micro Devices Inc (NASDAQ:AMD) and others are very well positioned to take advantage of it.”

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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