OpenAI's Billion-Dollar Chip Hunt Ignites AMD and Broadcom Rally, Leaves Nvidia on the Defensive

OpenAI's hunger for computing power is reshaping the AI hardware race and investors are chasing the new winners. In just two weeks, Advanced Micro Devices AMD has surged more than 40% after sealing a landmark chip supply deal with OpenAI, followed by another major order from Oracle. Broadcom AVGO joined the rally this week after unveiling its own agreement with OpenAI, jumping 10% in a single session its best day since April. Nvidia NVDA, still the dominant force with about 95% of the AI chip market, has slipped 3.5% over the same period, lagging a flat Nasdaq 100 Index. For many investors, the takeaway is that OpenAI's spending spree could be spreading the AI wealth beyond a single name.

The industry really wants a substantive alternative to Nvidia, and it seems like AMD has arrived, said Jason Tauber, co-manager of the Neuberger Berman Disrupters ETF. The shift reflects a broader reality: OpenAI's trillion-dollar commitments through 2030 are turning it into a powerful kingmaker. Its pursuit of multiple chip suppliers underscores both its scale and its urgency to diversify supply. As funds rotate toward AMD and Broadcom, analysts suggest this could be the next leg of the AI trade one where the market starts recognizing a deeper bench of players powering the next wave of machine intelligence.

Still, optimism comes with fine print. OpenAI's finances remain private, and analysts warn that no one outside the company truly knows how far its capital runway extends. Michael O'Rourke of Jonestrading cautioned that investors should stay alert to the risk of overextension, given the scale of OpenAI's obligations. Yet, as long as demand continues to outpace chip supply, AMD and Broadcom could keep reaping the benefits of the world's most aggressive AI build-out. For investors, the diversification away from Nvidia isn't just a hedge it could be the beginning of a new balance of power in the trillion-dollar AI hardware race.