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# Advanced Micro Devices: What You Need To Know About The Deal With OpenAI (Archive)
- URL: https://www.huntingalphas.com/advanced-micro-devices-what-you-need-to-know-about-the-deal-with-openai-archive/
- Published: 2025-10-16T10:37:00.000Z
- Updated: 2026-02-28T19:01:33.000Z
- Description: AMD’s OpenAI mega deal offers huge upside but raises dilution, margin, and valuation risks.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, AMD, Tech

*This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.*

## Elevator Pitch

- AMD's deal with OpenAI can add up to $192 billion in value. But the stock has risen up only $44 billion, suggesting that there may be more upside yet.
- The latest GPU generation ramp-up is going well, as AMD is shipping its MI350 GPUs in volume ahead of schedule and has secured big customers for its MI450 chips.
- AMD is prioritizing market share growth of its GPUs at the expense of margins. A key risk is that this tradeoff may have a more lasting effect on lower margins.
- AMD typically trades right at the median valuation vs. its semiconductor comps. But now, it is at a 49% premium, suggesting potential relative overvaluation.
- The ratio charts of AMD vs. SPX500 look like they have broken out of a key monthly resistance. But there is no confirmation yet, so I am hesitant to buy right now.

Read the full article [here](https://seekingalpha.com/article/4830362-advanced-micro-devices-what-you-need-to-know-about-the-deal-with-openai?ref=huntingalphas.com).

#### Disclosures and Disclaimers

**Past performance ≠ future results. Not investment advice. See* [**full Disclaimer*](https://www.huntingalphas.com/disclaimer/)**.*