Stacy Rasgon Explains Why Advanced Micro Devices (AMD) Deal With OpenAI 'Raises Eyebrows'

We recently published Top 10 Trending Stocks Everyone’s Watching in Q4. Advanced Micro Devices, Inc. (NASDAQ:AMD)is one of the trending stocks everyone's watching.

Stacy Rasgon, Bernstein U.S. semiconductor managing director and senior analyst, said in a recent program on CNBC that AMD CEO Lisa Su signed a deal with OpenAI to “be on the rocket ship” of the Sam Altman-led company.

“The Advanced Micro Devices Inc (NASDAQ:AMD) one raises a little more eyebrows. AMD actually gave OpenAI they gave them equity like in return for being allowed to sell them stuff. Although I kind of understand that as well. Like a AMD I mean Lisa has to be on the OpenAI rocket ship. It really is OpenAI and Altman that’s driving a lot of this. And if Advanced Micro Devices Inc (NASDAQ:AMD) is not there, they completely lose out. So Lisa had to get on that rocket ship as any way she could. She bought her ticket. It’s working. Like I’m not going to knock them. Like their is going up. But I would read that in some sense in terms of like the relative competitiveness of the products. It’s like nobody else had to, you know, give up something in return for the privilege of selling to.”

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 potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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