Description

AMD’s OpenAI Alliance—Is This The Biggest Threat NVIDIA Will Face?

In recent weeks, Advanced Micro Devices (AMD) has intensified its AI ambitions through a deepening strategic partnership with OpenAI, solidifying its presence in a highly competitive and capital-intensive space. AMD has begun supplying its MI300 and MI350 series accelerators to OpenAI, which has emerged as one of the largest and most influential customers of AMD’s Instinct GPU platform. The collaboration isn’t limited to hardware—OpenAI is actively assisting AMD in optimizing its ROCm software stack, significantly narrowing the gap with Nvidia’s CUDA. This co-development approach strengthens both the technical and commercial viability of AMD’s products, while supporting a smoother ecosystem transition for customers exploring Nvidia alternatives. The partnership has clear implications: it improves long-term revenue visibility for AMD’s AI segment and reinforces its strategic positioning against entrenched incumbents. However, it also raises the stakes, especially in light of AMD’s rich valuation multiples and the operational execution risks tied to rapidly scaling GPU production and system-level deployments.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

Want unlimited access to our reports? Purchase our $99 annual subscription!