Stacy Rasgon on Tech Earnings, AI Trade, and AMD's OpenAI Deal

Tech Earnings and AMD's Outlook

• 💡 AMD's quarterly results are expected to show strong core markets in PCs and servers, potentially benefiting from Intel's supply constraints.
• 🚀 The primary focus for AMD will be the OpenAI ramp, even though significant revenue from this deal is not expected for about a year.
• 📌 Investors will be watching for AMD's commentary on the shape and pace of the OpenAI ramp during their upcoming analyst day.

Semiconductor Market Sentiment

• ⚠️ A general "gut check" in semiconductor stocks is occurring due to nervousness surrounding the AI trade, with numbers having grown significantly.
• 📊 Today's market action is characterized by consolidation after a period of strong upward movement in AI-related stocks.

Pricing and Demand for AI Chips

• 🔍 Concerns about pricing holding up for AI chips are being addressed; while older generation chips might see price fluctuations, new AI hardware is in high demand.
• 📈 The overall level of demand for AI chips is extremely high, with companies selling everything they can produce.

Investment Call on AMD

• 🎯 Bernstein has maintained a neutral stance on AMD, not being strong bulls on the stock previously.
• 🧩 The recent deal giving 10% of AMD to OpenAI was unexpected but is seen as a strategic move to ensure AMD's participation in the OpenAI ecosystem.