Here's why Bank of America is bullish on AMD amid OpenAI deal

Core Insights - OpenAI is rapidly expanding its user base, reaching 800 million weekly active users and projected to hit 1 billion by year-end, which significantly increases its demand for computing power [2][3] - The semiconductor industry is expected to benefit from OpenAI's growth, with companies like Nvidia, Broadcom, and AMD well-positioned to capitalize on this demand [5][8] - OpenAI's partnerships with semiconductor firms are part of a broader ecosystem development in the AI industry, which will include competitors like Meta, Amazon, and Google [4][5] Industry Dynamics - The primary constraint in the AI industry is anticipated to be power and data center buildout rather than chip availability [6] - Public companies competing with OpenAI are currently operating at 70-80% of their operating cash flows, allowing them to fund significant capital expenditures [7] - OpenAI's disruptive potential across various sectors motivates other companies to accelerate their deployments, positively impacting the semiconductor industry [8]