Core Viewpoint - Renowned short-seller Jim Chanos questions the financial benefits of the partnership between Advanced Micro Devices Inc. (AMD) and OpenAI, suggesting it may not be as profitable for AMD as it seems [1][3]. Group 1: Deal Structure and Financial Implications - Chanos scrutinizes the deal's structure, indicating that AMD is expected to receive "tens of billions of dollars in revenue" while also providing OpenAI with equity warrants of a similar potential value [2][3]. - He raises concerns about the trade-off, questioning if giving up such significant equity warrants should result in more than "tens of billions of dollars in revenue for AMD" [3]. - Chanos implies that the net gain for AMD shareholders could be minimal, comparing the arrangement to a form of "vendor financing" where a seller subsidizes a buyer's purchase [4]. Group 2: AI Market Demand - Chanos challenges the prevailing narrative of limitless demand for computing power in the AI market [5]. - He finds it contradictory that sellers would need to offer significant incentives in a market characterized by supposedly infinite demand for compute resources [6]. - His remarks cast doubt on the organic strength of the demand for AI computing power, questioning the sustainability of the current market dynamics [6]. Group 3: Partnership Details - The partnership involves AMD supplying its Instinct GPU accelerators for OpenAI's next-generation AI infrastructure [7].

Market Overview - U.S. stock futures declined on Tuesday following mixed movements on Monday, with major benchmark indices showing lower futures [1] - The Advanced Micro Devices Inc. (NASDAQ:AMD) deal with OpenAI contributed to a rally in AI-linked stocks, which has been a driving force behind Wall Street's bull run this year [1] Economic Indicators - The U.S. government shutdown, now in its seventh day, has delayed the release of the U.S. trade deficit data [2] - The 10-year Treasury bond yield is at 4.17%, while the two-year bond yield stands at 3.59% [2] - Market expectations indicate a 92.5% likelihood of the Federal Reserve cutting interest rates in its upcoming October meeting [2] Futures Performance - Dow Jones futures decreased by 0.18%, S&P 500 by 0.08%, Nasdaq 100 by 0.04%, and Russell 2000 by 0.13% [3] - The SPDR S&P 500 ETF Trust (NYSE:SPY) fell by 0.037% to $671.36, while Invesco QQQ Trust ETF (NASDAQ:QQQ) rose by 0.0099% to $607.77 in premarket trading [3] Stocks in Focus - Trilogy Metals Inc. (NYSE:TMQ) surged by 180.38% in premarket trading after the White House announced a $35.6 million investment for a 10% stake to support mining exploration in Alaska's Ambler Mining District [8] - Advanced Micro Devices Inc. (NASDAQ:AMD) increased by 2.57% following a deal with OpenAI to supply Instinct GPU accelerators for AI infrastructure [9] - Applovin Corp. (NASDAQ:APP) fell by 2.56% amid an SEC investigation into its data-collection practices [10] - Telomir Pharmaceuticals Inc. (NASDAQ:TELO) jumped by 30.99% after releasing promising preclinical study results for its lead compound [11] Analyst Insights - Corporate America is expected to deliver a strong earnings season for Q3 2025, with a forecasted low-teens earnings growth rate for the S&P 500 [16] - Factors contributing to this outlook include a resilient economy, strong AI investment, and a weaker U.S. dollar [17] - Analysts predict a 5% earnings beat above current consensus estimates for the third quarter, despite potential tariff pressures [18]

Core Viewpoint - Renowned short-seller Jim Chanos questions the financial benefits of the partnership between Advanced Micro Devices Inc. (AMD) and OpenAI, suggesting it may not be as profitable for AMD as it seems [1][2]. Group 1: Partnership Structure - AMD is expected to receive "tens of billions of dollars in revenue" while providing OpenAI with equity warrants of a similar potential value [1][5]. - Chanos criticizes the trade-off, questioning if the deal should yield more than "tens of billions of dollars in revenue" given the equity warrants being offered [2]. Group 2: Market Demand Concerns - Chanos challenges the narrative of limitless demand for computing power, pointing out the contradiction in sellers needing to offer significant incentives [4]. - He likens the arrangement to "vendor financing," where a seller subsidizes a buyer's purchase, implying minimal net gain for AMD shareholders [2]. Group 3: Stock Performance - Following the announcement of the partnership, AMD's stock surged over 23.71% to $203.71 per share, reflecting strong investor optimism [7]. - AMD's stock has increased 68.87% year-to-date and 19.15% over the year, indicating a positive market response despite Chanos's critical assessment [7]. Group 4: Accounting Practices - Chanos raised concerns about AMD's accounting practices, suggesting that the true cost of the equity warrants might be obscured in non-GAAP earnings reports [6].