Is AMD a Better Buy Than Nvidia After Its OpenAI Deal?

Group 1 - AMD's deal with OpenAI involves providing chips in exchange for shares that vest upon reaching milestones, potentially disrupting Nvidia's dominance in AI hardware [1] - Following the announcement, AMD's stock has increased over 40% since the beginning of October, raising questions about its investment attractiveness compared to Nvidia [2] - OpenAI has also partnered with Broadcom for a $10 billion chip sale, contrasting with AMD's deal which includes options for OpenAI to invest in AMD at lower prices [3] Group 2 - The partnership with OpenAI is expected to create a ripple effect, encouraging other AI hyperscalers to purchase AMD chips if OpenAI's success is evident [4] - Nvidia's prior deal with OpenAI includes a commitment to provide at least 10 gigawatts of computing power, with Nvidia investing up to $100 billion in OpenAI, compared to AMD's 6 gigawatts [5][7] - The nature of the deals differs significantly; AMD's arrangement allows OpenAI to invest in AMD, while Nvidia's investment in OpenAI secures its chip supply [6]