Core Insights - Nvidia, AMD, and Broadcom are leading companies in the AI sector, with significant revenue potential that is not fully recognized by investors [1][5] - JPMorgan anticipates sustained positive revisions to AI revenue estimates as visibility improves and new capacity deals are announced [2][3] Company-Specific Insights - Nvidia is projected to generate $35 billion to $40 billion per gigawatt, particularly with the upcoming Rubin and Rubin Ultra platforms [8] - AMD's new Helios platform is expected to reach $20 billion per gigawatt, with a potential $30 billion+ in annual revenue from its deal with OpenAI [8] - Broadcom is estimated to generate approximately $27 billion per gigawatt with XPUs, and full deployment from OpenAI could yield $70 billion to $90 billion over three years [8] Industry Trends - The AI hardware supercycle is emerging, driven by the demand for next-generation data centers powered by GPUs and XPUs [5][6] - JPMorgan notes that the wattage and cost of next-generation data centers are central to the revenue generation for chipmakers [6] - There is a growing AI market, referred to as "a growing AI pie," which is expected to significantly boost earnings for Nvidia, AMD, and Broadcom [3]

Core Viewpoint - AMD's CEO Lisa Su emphasizes the need for the tech industry to embrace the potential of artificial intelligence, suggesting that current investments may be underestimating the technology's impact on the world [1] Group 1: AMD's Partnership with OpenAI - AMD announced a multibillion-dollar partnership with OpenAI, which includes supplying up to 6 gigawatts of GPUs starting with MI450 chips in the second half of 2026 [1] - The partnership led to a significant increase in AMD's stock price, which rose by as much as 35% following the announcement [1] - AMD issued OpenAI warrants for up to 160 million shares, approximately 10% of the company, with shares vesting as AMD meets milestones [2] Group 2: Financial Implications - The deal could potentially generate "tens of billions of dollars" in revenue for AMD over the coming years [2] - Barclays analyst estimates suggest the partnership could add $18 billion in annual revenue and $3 per share in quarterly earnings by 2030 if deployment progresses as planned [4] Group 3: Competitive Landscape - The announcement follows Nvidia's $100 billion investment in OpenAI, highlighting the competitive race to develop AI infrastructure [3] - AMD has been working to reduce Nvidia's dominance in the AI GPU market, where Nvidia currently holds about 90% market share [3] Group 4: Broader Ecosystem Impact - The partnership is also seen as beneficial for other players in the AI ecosystem, such as Astera Labs, which provides networking infrastructure related to AMD's new Helios platform [5] - The Helios platform is viewed as a key catalyst for the broader AI hardware landscape [5]