October 19, 2025

finance  
OpenAI, Intel, Microsoft AI Chip Deals Unveiled

The artificial intelligence sector continues to see significant developments across hardware, software, and investment strategies. Broadcom is partnering with OpenAI on a multi-year deal to co-develop custom AI accelerators, a collaboration expected to involve 10 gigawatts of power and potentially worth billions, aiming to boost AI computations. Meanwhile, Intel's foundry division is reportedly close to securing a major AI client, possibly Microsoft, for its advanced 18A chip manufacturing process, a crucial step in Intel's strategy to compete in AI chip production. Nvidia maintains its dominance in the AI chip market, powering most AI data centers and experiencing substantial sales growth, alongside TSMC, which holds a 90% share of advanced chip manufacturing. In a strategic pivot, Cipher Mining is entering the AI hosting market through a 10-year agreement with Google-backed Fluidstack, utilizing its Texas data centers for AI infrastructure and projecting $300 million in annual revenue. Investment funds like the Ark Autonomous Technology and Robotics ETF are looking beyond the largest AI players, including Tesla, to invest in companies such as Kratos Defense & Security and Archer Aviation, with projections of significant returns by 2030. SoundHound AI, despite recent stock volatility and insider selling, is experiencing rapid growth, with management projecting over 50% organic growth and potential for substantial long-term returns. Separately, UBS notes that while ServiceNow's core business remains strong, its adoption of new AI features is progressing more slowly than anticipated, though the firm remains optimistic about its long-term prospects.

Key Takeaways

  • Broadcom is partnering with OpenAI to co-develop custom AI accelerators, a deal potentially worth billions and involving 10 gigawatts of power.
  • Intel's foundry division is reportedly securing a major AI client, possibly Microsoft, for its advanced 18A chip manufacturing process.
  • Nvidia continues to lead the AI chip market, powering most AI data centers, while TSMC manufactures 90% of advanced AI chips.
  • Cipher Mining is shifting focus to AI hosting through a 10-year deal with Google-backed Fluidstack, projecting $300 million in annual revenue.
  • The Ark Autonomous Technology and Robotics ETF invests in a mix of AI companies, including Tesla, and projects potential returns of up to 200% by 2030.
  • SoundHound AI is experiencing rapid growth, with projections of over 50% organic growth and potential for significant long-term returns, despite recent stock volatility.
  • ServiceNow's core business is strong, but adoption of its new AI features is slower than anticipated, according to UBS.
  • The Ark ETF's top holdings include companies like Kratos Defense & Security and Archer Aviation, alongside Tesla.
  • The Broadcom-OpenAI partnership aims to speed up AI computations with custom AI chips.
  • Cipher Mining's move into AI hosting leverages existing data center assets for AI workloads.

AI ETF Ark Autonomous Technology could see 200% returns by 2030

The Ark Autonomous Technology and Robotics ETF, an actively managed fund, focuses on innovative AI companies beyond just the largest players. While it holds Tesla, its top holdings include less known companies like Kratos Defense & Security, Archer Aviation, and Teradyne. The ETF has a 0.75% expense ratio, which is typical for specialized funds. Despite potential volatility, the fund's investments in companies like Rocket Lab USA and Palantir have shown significant past gains, and it could potentially triple an investor's money by 2030 if economic conditions are favorable.

Ark Autonomous Technology ETF may offer 200% returns by 2030

The Ark Autonomous Technology and Robotics ETF, led by Cathie Wood, stands out from other AI ETFs by not concentrating solely on the biggest AI stocks. While Tesla is a top holding, the ETF also invests in smaller, high-potential companies like Kratos Defense & Security and Archer Aviation. Its expense ratio is 0.75%, which is comparable to other specialized ETFs. The fund has outperformed the 'Magnificent Seven' in 2025 and has the potential to deliver substantial returns, possibly tripling investments within five years, though it is considered a volatile investment.

Top 3 Tech Stocks for AI Growth: Broadcom, Nvidia, TSMC

Three technology stocks poised for significant growth due to artificial intelligence (AI) are Broadcom, Nvidia, and Taiwan Semiconductor Manufacturing (TSMC). Broadcom recently partnered with OpenAI to develop AI accelerators, a deal potentially worth billions and expected to boost its AI revenue significantly. Nvidia continues to dominate the AI chip market, powering most AI data centers and experiencing substantial sales growth. TSMC, with its 90% share of advanced chip manufacturing, is essential for AI chip production and has seen impressive stock returns.

Cipher Mining shifts to AI hosting with Google-backed Fluidstack deal

Cipher Mining is diversifying beyond Bitcoin mining by entering into a 10-year AI hosting agreement with Google-backed Fluidstack. This strategic move utilizes Cipher's Texas data centers to support AI infrastructure, a significant departure from its previous focus. The partnership is projected to generate $300 million in annual revenue, signaling a substantial shift toward profitability and a more stable income stream. This transition into the AI sector leverages Cipher's existing assets and taps into the rapidly growing demand for AI workloads. The company's stock has seen a positive reaction, reflecting investor confidence in this new direction.

Broadcom partners with OpenAI for custom AI accelerators

Broadcom has entered a multi-year partnership with OpenAI to co-develop and deploy 10 gigawatts of custom AI accelerators. This collaboration highlights the increasing demand for specialized AI hardware and Broadcom's growing role in high-performance computing. The deal involves co-developing custom AI chips designed to speed up AI computations, with Broadcom providing its advanced networking and semiconductor solutions. The partnership is expected to significantly impact the AI hardware market, solidifying Broadcom's position and potentially reshaping the industry. Broadcom's stock saw a notable increase following the announcement.

Intel secures major AI client for advanced 18A chip manufacturing

Intel's foundry division has reportedly secured a significant AI client, likely Microsoft, for its advanced 18A chip manufacturing process. This development marks a crucial step in Intel's strategy to compete in advanced chip production for AI applications. The potential deal validates Intel Foundry Services' investment in cutting-edge technology and its ability to attract major customers. Securing a client like Microsoft for the 18A process would provide substantial revenue and endorse Intel's manufacturing capabilities. This success could reshape investor perception of Intel, shifting focus from its turnaround challenges to its potential in the lucrative AI chip market.

SoundHound AI stock dips amid insider sales and market volatility

SoundHound AI's stock has experienced a decline of -7.51% amid market uncertainty and significant insider selling. The stock has shown volatility, trading between $19.27 and $21.35 in recent days. The company faces challenges with negative profitability metrics, including a -175.3% EBIT margin and a net income loss of $74.7 million. Despite revenue of $84.7 million, its price-to-sales ratio is high, suggesting potential overvaluation. Insider selling by executives raises concerns about internal challenges or perceived overvaluation, contributing to a bearish outlook for the stock.

ServiceNow's core business strong but AI adoption lags, says UBS

UBS reports that ServiceNow's core business, including IT Service Management and IT Operations Management, remains solid with strong customer demand and contract renewals. However, the adoption of its new AI-powered features has been slightly slower than anticipated. UBS maintains a Buy rating on the stock but lowered its price target to $1,075.00 from $1,100.00. While the AI opportunity is significant, customers are still in the early stages of integration. Despite this, UBS is optimistic about ServiceNow's long-term prospects due to its market position and innovation.

SoundHound AI could deliver 100x returns by 2035

SoundHound AI is experiencing rapid growth, with management projecting 50% or greater organic growth for the foreseeable future. The company's technology is being deployed in industries like restaurant drive-thrus and digital assistants for vehicles, with potential expansion into financial services and healthcare. SoundHound AI reported 217% growth in the second quarter, with over 50% being organic. If this growth rate is sustained, a $10,000 investment could potentially become $1 million by 2035. However, achieving 100x returns is a significant challenge, though even 10x returns in a decade would represent a substantial gain.

Sources

AI ETFs Autonomous Technology Robotics Investment Tesla Kratos Defense & Security Archer Aviation Teradyne Rocket Lab USA Palantir Cathie Wood AI Stocks Broadcom Nvidia TSMC OpenAI AI Accelerators AI Chip Market Chip Manufacturing Cipher Mining AI Hosting Google Fluidstack Data Centers AI Infrastructure Intel Microsoft 18A Chip Manufacturing Foundry Services AI Applications SoundHound AI Insider Selling Market Volatility Profitability Price-to-Sales Ratio ServiceNow IT Service Management IT Operations Management AI Features UBS Digital Assistants Financial Services Healthcare