Constructing the AI Landscape: OpenAI Coordinates with Advanced Micro Devices (AMD)

Brasada Capital Management, an investment management company, released its Q3 2025 investor letter. A copy of the letter can be downloaded here. In the letter, the firm noted that the market entered the fourth quarter with equities near all-time highs and monetary policy easing. The firm also believes that this momentum could persist even though there are indications that a capital expenditure bubble exists. Further, the firm continues to invest selectively in companies with solid moats and cash flows, while steering clear of balance-sheet risks. In addition, you can check the fund’s top 5 holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Brasada Capital Management highlighted stocks such as Advanced Micro Devices, Inc. (NASDAQ: AMD). Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company that operates through Data Center, Client, Gaming, and Embedded segments. The one-month return of Advanced Micro Devices, Inc. (NASDAQ:AMD) was -9.69%, and its shares gained 66.36% of their value over the last 52 weeks. On December 15, 2025, Advanced Micro Devices, Inc. (NASDAQ:AMD) stock closed at $207.58 per share, with a market capitalization of $338.486 billion.

Brasada Capital Management stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its third quarter 2025 investor letter:

“To understand OpenAI’s current position, the best historical analogy is not a recent mobile platform like iOS, but rather Microsoft Windows in the PC era. Just as Microsoft leveraged DOS, and the applications built for it to become the default operating system for the enterprise and then consumers, OpenAI has leveraged ChatGPT to aggregate hundreds of millions of users. This massive user base is the ultimate source of power, allowing OpenAI to exert gravitational pull on the entire AI value chain, from the chipmakers up to the cloud providers. This leverage is now being used to orchestrate the buildout of the AI ecosystem on OpenAI’s terms. Consider the chip layer.

Advanced Micro Devices, Inc. (NASDAQ:AMD): To create a second source and reduce reliance on a single supplier, a playbook move straight from IBM’s handling of Intel in the 1980s, OpenAI struck a deal to purchase 6 gigawatts worth of AMD’s chips. In return, AMD granted OpenAI warrants for up to 160 million shares, or roughly 10% of the company.”

Advanced Micro Devices, Inc. (NASDAQ:AMD) is in 19th position on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 115 hedge fund portfolios held Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of the third quarter, up from 113 in the previous quarter. While we acknowledge the risk and potential of Advanced Micro Devices, Inc. (NASDAQ: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 Advanced Micro Devices, Inc. (NASDAQ:AMD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Advanced Micro Devices, Inc. (NASDAQ:AMD) and shared the list of fastest-growing semiconductor stocks to buy. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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