Key Points AMD stock soared 58% in October 2025 on the back of major developments -- chiefly a large OpenAI deal. OpenAI is already using AMD’s Instinct AI chips in its data centers. The artificial intelligence (AI) hardware race is heating up with several tech giants in play. 10 stocks we like better than Advanced Micro Devices › Shares of Advanced Micro Devices (NASDAQ: AMD) rose 58.3% in October 2025, according to data from S&P Global Market Intelligence. The semiconductor designer had a lot g ...

Group 1: Core Views - The "15th Five-Year Plan" (2026-2030) is crucial for establishing a foundation for achieving the 2035 modernization goals, focusing on high-quality development driven by new productive forces [2][3] - The core development line emphasizes technological innovation, with key areas including artificial intelligence, quantum technology, and low-altitude economy becoming strategic focuses in international competition [2][3] Group 2: Strategic Goals - Economic growth should maintain an average of approximately 4.73% annually to achieve the long-term goal of doubling GDP or per capita income by 2035 [3] - Key quality indicators include a continuous increase in labor productivity, R&D investment intensity reaching 3%, and a rise in the share of non-fossil energy consumption to around 25% [3] Group 3: Policy Recommendations - A systematic policy framework is proposed, including building a modern industrial system centered on new productive forces, deepening reform and opening up, and promoting green low-carbon transformation [4] - Emphasis on enhancing governance efficiency through reforms and digital governance to modernize national governance [4] Group 4: AI Industry Insights - OpenAI has signed a 10 GW computing power order with Broadcom, planning to launch custom data center chips by 2026, indicating a strategic move towards building foundational hardware capabilities [7] - OpenAI is exploring new business models, including partnerships with Walmart for direct purchasing through ChatGPT and plans to launch consumer hardware products, aiming for diversified monetization [8] - TSMC has observed stronger AI demand compared to three months ago, with optimistic revenue guidance for Q4, reflecting confidence in the AI growth trajectory [9]

Core Viewpoint - AMD and Oracle have announced a partnership for AMD to deploy 50,000 advanced AI chips in Oracle's data centers starting in the second half of 2026, enhancing AMD's competitive position against Nvidia [1][2]. Group 1: Partnership Details - AMD will supply 50,000 of its Instinct MI450 GPUs to Oracle, which are also being supplied to OpenAI for AI model training and inference [1][2]. - The financial terms of the AMD and Oracle deal were not disclosed [1]. Group 2: Market Context - This partnership follows AMD's recent multi-billion-dollar agreement to supply chips to OpenAI, positioning AMD more favorably against Nvidia, which has been a dominant player in the AI chip market [2]. - Oracle's senior vice president expressed confidence in customer adoption of AMD's chips, particularly in the inferencing space [3]. Group 3: Recent Industry Developments - The Oracle-AMD partnership is part of a broader trend of AI infrastructure deals among major tech companies, including a recent agreement between Broadcom and OpenAI for 10 gigawatts of custom AI accelerators [4]. - Nvidia has also announced a significant deal with OpenAI, providing access to 10 gigawatts of GPUs and a $100 billion investment [4].

Investment Rating - The report maintains a "Positive" investment rating for the communication industry [10]. Core Insights - The communication sector experienced a decline of 1.40% in the 41st week of 2025, ranking 27th among primary industries in the Yangtze River region. However, since the beginning of 2025, the sector has risen by 59.73%, ranking 2nd among primary industries [2][5]. - OpenAI is expanding its AI ecosystem by launching the Sora2 social application and integrating payment features within ChatGPT. It has partnered with AMD for a 6GW computing power collaboration and with Samsung and SK for long-term storage supply [2][8]. - Global investment in AI infrastructure is increasing, with xAI's funding potentially exceeding $20 billion, and NVIDIA planning to invest around $2 billion. Google is investing $10 billion to build a 1GW data center in India [2][7]. Summary by Sections Market Performance - In the 41st week of 2025, the communication sector fell by 1.40%, while it has increased by 59.73% since the start of the year, ranking 2nd among primary industries [2][5]. OpenAI Developments - OpenAI launched the flagship audio-video generation model Sora2 and a corresponding iOS social application. It also introduced an "instant checkout" feature in ChatGPT, initially supporting U.S. Etsy merchants and planning to expand to over one million Shopify merchants. OpenAI announced a strategic partnership with AMD to deploy up to 6GW of AMD GPUs, with the first 1GW expected to be operational in the second half of 2026 [6][8]. AI Infrastructure Investment - The report highlights a surge in global AI infrastructure investments, with xAI planning to raise up to $20 billion, and NVIDIA expected to contribute up to $2 billion. Google is investing $10 billion in a data center cluster in Visakhapatnam, India, which will have a capacity of 1GW and is projected to be the largest data center in Asia by 2028 [7][8]. Investment Recommendations - The report recommends several companies based on their sectors: - Telecom operators: China Mobile, China Telecom, China Unicom - Optical modules: Zhongji Xuchuang, Xinyi Sheng, Tianfu Communication - Liquid cooling: Invec - Air-core optical fibers: Fenghuo Communication, Hengtong Optic-electric - Domestic computing power: Runze Technology, Guanghuan New Network - AI applications: Boshi Jie, Heertai, Tuobang Co., Ltd. - Satellite applications: Huace Navigation, Haige Communication [8].

Core Viewpoint - AMD is set to launch its next-generation Instinct MI450 graphics accelerator using 2nm process technology, aiming to compete directly with NVIDIA's Rubin chip series [1][3][6] Group 1: Product Specifications - The Instinct MI450 will utilize TSMC's 2nm technology for its accelerator core chip (XCD), while the active interposer chip (AID) and media interface chip (MID) will be manufactured using TSMC's 3nm process [1][5] - MI450 is expected to deliver similar FP4/FP8 performance to NVIDIA's Rubin, but with 1.5 times the memory and bandwidth [3][5] - The MI400 series will integrate up to 432 GB of HBM4 memory, significantly enhancing bandwidth capabilities [7] Group 2: Market Positioning - AMD's data center operations head, Forrest Norrod, claims that MI450 will be the best solution for training, inference, distributed inference, and reinforcement learning, indicating confidence in competing with NVIDIA [6] - The MI450 is anticipated to be AMD's "Milan moment," referencing the significant leap made by AMD's EPYC server CPU series [6] - AMD plans to expand its rack options with the upcoming Helios system, which is expected to match the top configurations of NVIDIA's Rubin series [7] Group 3: Launch Timeline - The MI450 is projected to be released in 2026, coinciding with NVIDIA's launch of its next-generation Rubin series [7]

Core Insights - AMD has formed a significant partnership with OpenAI, but immediate revenue generation is not expected until late 2026, with substantial growth anticipated in 2027 [2][8] - The partnership could potentially add over $100 billion to AMD's sales in the coming years, driven by AI-related data center revenue from the deployment of Instinct MI450 and Helios systems [5][8] - The deal includes a complex stock warrant structure that allows OpenAI to acquire up to 160 million AMD shares based on performance metrics, which could significantly impact AMD's stock valuation [6][7] Revenue Timeline - Revenue from the OpenAI partnership will not commence until the second half of 2026, with a significant ramp-up expected in 2027 [3][8] - Each gigawatt-scale tranche of AMD's installations could lead to double-digit billions in annual revenue once fully operational [3][5] Strategic Implications - The partnership positions AMD as a competitive player in the AI space, potentially attracting other major companies like Meta and Google due to the efficiency of its Instinct chips [8] - The structure of the deal provides performance incentives for OpenAI, aligning interests between the two companies and creating a pathway to bypass Nvidia's market dominance [7]

Core Insights - NVIDIA and AMD are competing to develop superior AI architectures, with significant upgrades planned for their next-generation products in terms of power consumption, memory bandwidth, and process node utilization [1][2] - AMD's Instinct MI450 AI series is expected to be highly competitive against NVIDIA's Vera Rubin, with both companies making substantial modifications to their designs [1][5] Group 1: AMD's Optimism and Product Comparison - AMD executive Forrest Norrod expressed optimism about the MI450 product line, likening it to AMD's transformative "Milan moment" with the EPYC 7003 series [2] - Norrod stated that MI450 will be more competitive than NVIDIA's Vera Rubin and will utilize AMD's technology stack [3] - The MI450X's TGP has increased by 200W, while Rubin's TGP has risen by 500W to 2300W, indicating a significant enhancement in performance [5] Group 2: Specifications and Technological Advancements - The MI450 is rumored to launch in 2026 with HBM4 memory, offering up to 432 GB per GPU and a memory bandwidth of approximately 19.6 TB/s, while Vera Rubin is expected to have around 288 GB per GPU and a bandwidth of ~20 TB/s [6] - AMD's dense compute performance is estimated at ~40 PFLOPS, compared to ~50 PFLOPS for NVIDIA's offering [6] - Both companies are expected to narrow the technological gap as they adopt similar technologies, including HBM4 and TSMC's N3P node [6] Group 3: D2D Interconnect Technology - AMD plans to significantly enhance its D2D interconnect technology with the upcoming Zen 6 processors, as evidenced by developments in the Strix Halo APU [7][8] - The current D2D communication method using SERDES has limitations in efficiency and latency, which AMD aims to address with new designs [10][12] - The Strix Halo utilizes TSMC's InFO-oS and redistribution layer (RDL) to improve communication between chips, reducing power consumption and latency [12][14]