Altimeter Capital’s CEO Brad Gerstner recently highlighted Advanced Micro Devices Inc.’s (NASDAQ: AMD) groundbreaking deal with OpenAI, marking a pivotal moment for CEO Lisa Su. This multi-billion-dollar agreement involves OpenAI acquiring up to six gigawatts of AMD’s advanced Instinct MI450X GPUs, with AMD potentially relinquishing 10% of its shares. Analysts forecast this partnership could yield over $100 billion in revenue, essential for AMD to regain competitive ground against Nvidia Corp. (NASDAQ: NVDA), which has dominated the AI chip market. Gerstner labeled Su’s bold approach as a “bet-the-farm” strategy, emphasizing the risks and rewards of the deal. With AMD’s previous generation, the MI350, underperforming against Nvidia, success with the MI450 is crucial. The partnership is expected to unlock significant revenue streams and challenge Nvidia’s ecosystem but also brings supply chain considerations into play, especially concerning energy and critical chip materials. Analysts are optimistic about AMD’s future prospects, raising stock targets following the announcement.
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