AMD + OpenAI Just Changed the Chip Game ⚡

A deal that’s real, markets hitting highs, and some much-needed caution.

Author

Money American
October 16, 2025

Happy Thursday!

This is Money American - your weekly cheat sheet on the hottest AI stocks, top moves, market sentiment, and a curated watchlist to help you ride the upside while managing the risks.

🔍 Big Themes

  • Nvidia surges on $40B data center deal.
    Nvidia jumped after the news that it’s a founding member of a $40B AI Infrastructure Partnership that bought Aligned Data Centers (with Microsoft, BlackRock) to control compute capacity. Investors

  • C3.ai underwhelms vs peers — On Oct 14, C3.ai (ticker AI) dropped ~1.96%, underperforming peers in an otherwise positive market day. MarketWatch

  • Oracle to use AMD’s AI chips in cloud push — Oracle plans to offer cloud services powered by AMD’s upcoming AI chips. That’s a shift in infrastructure alliances. reuters.com

  • OpenAI’s cash burn raises eyebrows
    A Breakingviews piece highlights OpenAI’s plan to burn ~$115B by 2029 — ambitious scale, but risky on financials. reuters.com

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📈 Company & Stock Moves

  • Nvidia surges on $40B data center deal — Nvidia jumped after the news that it’s a founding member of a $40B AI Infrastructure Partnership that bought Aligned Data Centers (with Microsoft, BlackRock) to control compute capacity. Investors

  • Broadcom scores big with OpenAI deal — Broadcom’s shares jumped ~9% after clinching a major multi-year agreement to build custom AI accelerators (10 gigawatts) for OpenAI. Investors+1

  • C3.ai underwhelms vs peers — On Oct 14, C3.ai (ticker AI) dropped ~1.96%, underperforming peers in an otherwise positive market day. MarketWatch

  • IMF flags AI bust risk (soft warning) — The IMF’s chief economist said the AI investment boom “may lead to a dot-com style bust”, but probably not a system-wide crash. reuters.com

  • Oracle to use AMD’s AI chips in cloud push — Oracle plans to offer cloud services powered by AMD’s upcoming AI chips. That’s a shift in infrastructure alliances. reuters.com

  • OpenAI’s cash burn raises eyebrows — A Breakingviews piece highlights OpenAI’s plan to burn ~$115B by 2029 — ambitious scale, but risky on financials. reuters.com

⚠️ Market Sentiment

  • AI bubble warning from IMF — AI investment surge may lead to a dot-com style bust, but because it’s equity-funded (not debt-funded), the risk of a systemic crash is lower. Reuters

  • Options traders go wild — Call options massively outpace puts, signaling strong bullish sentiment (or FOMO). Reuters

  • Sustainability doubts surface — Analysts ask: can all this AI spending really pay off? Big capital outflows risk turning turn into regret. Reuters

  • Profit growth softening, valuations stretched — Megacap tech and AI names are under extra scrutiny as valuations go high and spending becomes harder to justify. Reuters

📊 MoneyAmerica AI Watchlist

  • AMD (AMD) — The new OpenAI partnership finally gives it teeth vs Nvidia. Big upside if execution hits. Reuters

  • Micron (MU) — Memory supplier for AI data centers. More value than hype here. Under-the-radar beneficiary. Investopedia

  • Dell (DELL) — Racks and servers for AI clusters. Less glamour, more consistency. Solid pick for infrastructure exposure. Investopedia

  • Broadcom (AVGO) — Fresh multi-year OpenAI chip deal = massive validation. Strong earnings tailwind. Investors.com

  • Palantir (PLTR) — Their AIP (AI Platform) keeps expanding into enterprise and defense. Profitable growth rare in AI land. Investopedia

🧭 What to Watch Next Week

  • Earnings reports especially among chipmakers, memory & AI hardware names. See if they booked real AI-driven revenue.

  • Announcements of new AI infrastructure deals or alliances (e.g. new data centers, compute partnerships).

  • Capital expenditure trends — how much are big tech firms actually spending on AI, and is it sustainable?

  • Regulatory / antitrust moves or policy frameworks around AI — that can swing sentiment fast.

💡 Bottom Line

The AI stock story isn’t over — it’s evolving. Right now, the battleground is infrastructure and compute. But that’s also where the cracks might show if capital isn’t well allocated. Focus on names with real product traction and margin paths, not just hype. Play core names for stability, keep a slice for aggressive bets, and assume there’ll be volatility.