The artificial intelligence sector is experiencing a significant boom, with major players like IBM, Tesla, and OpenAI making substantial moves. IBM is investing $150 billion over five years in AI hardware production and has partnered with AMD to build an AI supercluster, while also launching its new Granite 4.0 AI models. Wedbush analyst Daniel Ives sees Tesla's AI advancements in autonomous driving and robotics as a key growth driver, potentially leading to a $2 trillion market cap by early 2026. OpenAI has secured a multi-year, multi-billion dollar deal with AMD to power its AI facilities, including the Stargate project, diversifying its chip supply beyond Nvidia. This partnership involves AMD supplying six gigawatts of GPUs, with an option for OpenAI to acquire a 10% stake in AMD, and is expected to generate tens of billions in revenue for AMD, though actual deployment and revenue are not anticipated until late 2026. Despite this, AMD's stock surged significantly on the news. Meanwhile, Nvidia continues to be a dominant force, with analysts predicting a $10 trillion valuation by 2030, attracting major investments from billionaires. Bernstein analysts, however, favor Apple over Super Micro for AI hardware in 2025, anticipating strong growth in the on-device AI market. In contrast, C3.ai is facing challenges, with declining sales in 2025, though leadership changes and strong partnerships offer potential for a rebound.
Key Takeaways
- IBM plans a $150 billion investment in AI hardware production and has partnered with AMD for an AI supercluster.
- IBM launched Granite 4.0, new open-source AI language models that are memory-efficient and ISO 42001 certified.
- Wedbush analyst Daniel Ives predicts Tesla could reach a $2 trillion market cap by early 2026 due to its AI advancements in autonomous driving and robotics.
- OpenAI has entered a multi-year deal with AMD to use six gigawatts of AMD GPUs in its AI facilities, with an option for OpenAI to take a 10% stake in AMD.
- This AMD-OpenAI partnership is expected to generate tens of billions in revenue for AMD, though significant revenue is not anticipated until late 2026.
- Nvidia is projected by analyst Beth Kindig to reach a $10 trillion market cap by 2030, with significant investments from billionaires like Ken Griffin and David Tepper.
- Bernstein analysts prefer Apple over Super Micro for AI hardware in 2025, focusing on the projected $180 billion on-device AI market by 2030.
- C3.ai is experiencing declining sales in 2025, with Q1 revenue down 19% year-over-year, despite analyst buy ratings.
- Agentic coding, where AI builds AI, is identified by Wells Fargo as a driver of a new AI boom, benefiting companies like HubSpot and Atlassian.
- The massive investment in AI data centers is highlighted by OpenAI's chip deals with both Nvidia and AMD.
IBM's AI push boosts stock, challenges tech rivals
IBM's stock price has significantly increased, nearing a 52-week high in October 2025, driven by its focus on artificial intelligence and hybrid cloud. The company has a $7.5 billion book of business in generative AI and plans a $150 billion investment over five years for AI hardware production. IBM also partnered with AMD to build a powerful AI supercluster and launched Granite 4.0, new open-source AI language models that are more memory-efficient and the first to achieve ISO 42001 AI governance certification. Despite a cautiously optimistic analyst outlook, IBM is strategically positioning itself against major tech competitors in cloud and AI markets, while leading in quantum computing.
Analyst Daniel Ives sees big AI growth for Tesla and Progress Software
Wedbush analyst Daniel Ives believes the AI revolution is entering a new growth phase, with Big Tech companies increasing capital spending and enterprise use cases expanding. He highlights Tesla and Progress Software as two stocks well-positioned to benefit from this trend. Ives sees Tesla's AI advancements in autonomous driving and robotics as key to future growth, predicting a potential $2 trillion market cap by early 2026. For Progress Software, its focus on data platforms and AI integration, along with recent acquisitions like Nuclia, positions it for continued success in the enterprise software market.
Wells Fargo: Agentic coding sparks AI boom, names 3 top stocks
Wells Fargo analyst Ryan MacWilliams believes agentic coding, where AI builds AI, is fueling a new AI boom and driving significant coding productivity. He recommends three stocks poised to benefit: HubSpot, Atlassian Corporation, and another unnamed company. HubSpot is leveraging agentic AI to enhance its marketing platform with new customer agents. Atlassian provides collaboration tools that are also being integrated with AI capabilities. These companies are expected to capitalize on the growing demand for AI infrastructure and development.
OpenAI partners with AMD for AI chips
OpenAI has agreed to use computer chips from AMD in its new AI facilities, marking a significant deal alongside its previous agreement with Nvidia. This partnership involves deploying AMD chips capable of consuming 6 gigawatts of power, starting in the second half of next year. The agreement also includes an option for OpenAI to acquire a 10 percent stake in AMD. This move diversifies OpenAI's chip supply and highlights the massive investment tech companies are making in building new data centers to support AI technologies.
OpenAI secures multi-year chip deal with AMD
OpenAI has signed a multi-year partnership with chipmaker Advanced Micro Devices (AMD) to power its generative artificial intelligence efforts. The deal involves AMD supplying six gigawatts worth of chips, with the potential to generate tens of billions in revenue for AMD over five years. This agreement follows a significant contract with Nvidia and is part of OpenAI's broader strategy to secure massive computing power for its AI data centers, including the Stargate project. The partnership aims to diversify OpenAI's semiconductor supply chain beyond Nvidia.
C3.ai struggles in 2025 despite AI rally
C3.ai (NYSE:AI) has experienced a significant stock price decline in 2025, losing half its value despite the overall market rally in AI stocks. This downturn is attributed to sharply declining sales, with Q1 results showing a 19% year-over-year revenue decrease and continued double-digit declines expected. Despite these challenges, the company has leadership changes, with Stephen Ehikian taking over as CEO, and maintains strong partnerships and a compelling product. Analysts maintain a buy rating, suggesting potential for a rebound.
Billionaires invest in Nvidia, expecting $10 trillion valuation
Technology analyst Beth Kindig predicts Nvidia will reach a $10 trillion market cap by 2030, representing significant upside from its current $4.5 trillion valuation. Several billionaire hedge fund managers, including Ken Griffin, Philippe Laffont, and David Tepper, significantly increased their Nvidia holdings in the second quarter. Nvidia's dominance in AI accelerators, its vertical integration of hardware and software through its CUDA platform, and its role in physical AI use cases like autonomous cars and robots position it for continued leadership. The company's hardware and software are crucial for various AI applications, from data centers to robotics.
AMD stock jumps 25% on OpenAI AI infrastructure deal
Advanced Micro Devices (AMD) saw its stock surge approximately 25% after announcing a major AI infrastructure deal with OpenAI. This partnership is expected to generate tens of billions of dollars in revenue for AMD over multiple years. AMD will supply six gigawatts of GPUs, with vesting milestones tied to deployment and share price targets. This deal positions AMD as a key player in the AI hardware market, challenging Nvidia's dominance.
AMD's $70B surge on OpenAI deal faces scrutiny
Advanced Micro Devices (AMD) announced a significant multi-year AI hardware partnership with OpenAI, potentially generating tens of billions in revenue. However, actual revenue from deployments is not expected until late 2026. Despite the long-term promise, the market's immediate reaction, which caused a $70 billion surge in AMD's market value, may be excessive. Investors are advised to be cautious, as the AI sector's interconnected deals could be fragile, making it prudent to hold AMD but not advisable to buy at current high levels.
AMD stock soars on OpenAI partnership, potentially a game changer
Advanced Micro Devices (AMD) announced a major strategic partnership with OpenAI, the creator of ChatGPT. Under this multiyear agreement, OpenAI will deploy 6 gigawatts of AMD GPUs, starting with 1 gigawatt of MI450 series chips in the second half of 2026. AMD will also act as a core strategic compute partner for future AI chip development. The deal, which includes a warrant for OpenAI to purchase roughly 10% of AMD, is estimated to be worth tens of billions of dollars and could be a game changer for AMD, positioning it as a significant competitor to Nvidia in the AI chip market.
OpenAI deal boosts AMD as AI economy grows
Advanced Micro Devices (AMD) shares surged 24% following the announcement of a deal to provide computing power for OpenAI's AI initiatives. This partnership involves delivering data processing power for 6 gigawatts of capacity and includes an option for OpenAI to take up to a 10% share in AMD. The agreement signals that AMD is a significant player in the AI revolution, providing a major platform to monetize AI advancements. OpenAI's influence is increasingly impacting stock market performance across various tech companies.
Bernstein picks Apple over Super Micro for AI hardware in 2025
Bernstein analysts favor Apple Inc. over Super Micro Computer Inc. as the top AI hardware stock for 2025, emphasizing the growth of on-device AI. They project the on-device AI market could reach $180 billion annually by 2030, with Apple's ecosystem and proprietary chips well-positioned to capture a significant share. While Super Micro benefits from the data center boom, Bernstein sees Apple's focus on local AI processing offering advantages in privacy, speed, and efficiency. This strategic choice highlights a potential shift towards AI capabilities integrated directly into consumer devices.
Sources
- IBM’s AI Revolution Sends Stock Soaring as Big Blue Takes on Tech Giants
- ‘Still More Room to Go’: Daniel Ives Sees the Next Wave Coming for These 2 AI Stocks
- Wells Fargo Says Agentic Coding Is Fueling a New AI Boom — Here Are 3 Stocks Poised to Benefit
- OpenAI Agrees to Use Computer Chips from AMD
- OpenAI signs multi-billion dollar chip deal with AMD
- C3.ai: Stay Patient Through The Transition (NYSE:AI)
- Billionaires Buy an Artificial Intelligence (AI) Stock That a Wall Street Analyst Says Could Soar to $10 Trillion @themotleyfool #stocks $NVDA $GOOGL $TSLA $AMZN $^GSPC $GOOG
- AMD stock surges 25% after AI infrastructure deal with OpenAI
- AMD’s $70 Billion Surge: OpenAI Deal You Should Be Questioning (NASDAQ:AMD)
- AMD Stock Skyrockets on Massive Deal With OpenAI. Could This Be a Game Changer for AMD?
- OpenAI delivers Midas touch to AMD as AI economy booms
- Bernstein Favors Apple Over Super Micro as Top AI Hardware Stock for 2025