nvidia, intel and openai Updates

The artificial intelligence sector is experiencing rapid expansion and significant investment, with companies like Dell Technologies raising growth targets due to surging demand for AI servers. Dell now anticipates annual adjusted earnings per share to grow by at least 15% and revenue to grow between 7% and 9% compounded annually, driven by the need for computing power to run services such as ChatGPT. Nvidia is solidifying its role as an AI infrastructure architect through major partnerships, including a $5 billion investment in Intel's manufacturing and a substantial collaboration with OpenAI. Meanwhile, OpenAI is also diversifying its hardware suppliers, securing a multi-billion dollar deal with AMD for computing power, which could generate over $100 billion in revenue for AMD over four years. This deal involves AMD delivering GPU capacity starting with its MI300 chips. Oracle's AI cloud services, which utilize Nvidia chips, are reportedly showing lower profit margins compared to its other business segments, despite contributing to its stock rally and a significant deal with OpenAI. Emerging markets, particularly the Taiwan stock exchange, are seeing gains fueled by AI optimism, with chipmaker TSMC benefiting from deals like the one between AMD and OpenAI. Super X AI Technology Limited's stock surged following the launch of its new AI server powered by Nvidia's Blackwell GPUs. However, the rapid growth also brings potential challenges, as Michael Dell notes the eventual saturation point for AI data center construction and highlights power availability as a constraint for customers like OpenAI. In other AI-related news, C3.ai faces a class action lawsuit over alleged misleading statements regarding its former CEO's health impacting sales, and Japanese AI startup Alt has been delisted due to an accounting scandal involving inflated sales figures.

Key Takeaways

• Dell Technologies has significantly increased its revenue and profit growth targets for the next four years, driven by high demand for its AI servers, anticipating at least 15% annual adjusted earnings per share growth and 7%-9% compounded annual revenue growth.
• Nvidia is expanding its influence beyond chip sales by investing $5 billion in Intel's manufacturing and partnering with OpenAI to build extensive AI infrastructure.
• OpenAI has entered into a multi-billion dollar deal with AMD, its main competitor to Nvidia, to secure computing power for its next-generation AI models, potentially generating over $100 billion in revenue for AMD over four years.
• Oracle's AI cloud services, which use Nvidia chips, are reportedly operating with lower profit margins (around 14%) compared to its other business segments.
• Emerging markets, including Taiwan's stock exchange, are experiencing gains driven by AI optimism, with chipmakers like TSMC benefiting from industry partnerships.
• Super X AI Technology Limited's stock rose significantly after launching a new AI server that utilizes Nvidia's latest Blackwell B300 GPUs.
• Michael Dell foresees a future saturation point for AI data center construction and points to power availability as a key constraint for AI development.
• C3.ai is facing a class action lawsuit alleging misleading statements about its former CEO's health and its impact on the company's sales performance.
• Japanese AI startup Alt has been delisted from the Tokyo market due to an accounting scandal involving inflated sales figures for its AI services.
• The demand for AI computing power is so high that it is driving significant investments and partnerships across the semiconductor and cloud computing industries.

Dell boosts AI server forecasts on high demand

Dell Technologies has significantly increased its revenue and profit growth targets for the next four years, driven by strong demand for its AI servers. The company now expects annual adjusted earnings per share to grow by at least 15%, up from around 8%, and compounded annual revenue growth between 7% and 9%, up from 3% to 4%. This surge is fueled by the insatiable need for computing power to run AI services like ChatGPT. Dell's CEO Michael Dell highlighted the immense customer demand for AI infrastructure, noting the company is still in the early stages of AI adoption.

Dell raises growth targets due to AI server demand

Dell Technologies has raised its annual growth targets for the next four years, anticipating strong demand for its AI servers. The company now expects adjusted earnings per share to grow by at least 15% annually, a significant increase from the previous 8% target. Compounded annual revenue growth is projected between 7% and 9%, up from 3% to 4%. This optimistic outlook is driven by the high demand for AI infrastructure, with Dell's AI-optimized servers, built with components from partners like Nvidia, seeing a surge in orders.

Michael Dell sees potential for too many AI data centers

Michael Dell, CEO of Dell Technologies, believes that while demand for AI computing power is currently tremendous, the construction of AI data centers will eventually reach a saturation point. He noted that Dell's server networking business saw significant growth, with revenue up 58% last year and 69% last quarter. Despite this, Dell raised its expected long-term revenue growth to 7% to 9% and diluted earnings per share growth to 15%. A major constraint for customers, including OpenAI, is the availability of power to support these data centers.

Nvidia stock a buy after Intel and OpenAI deals?

Nvidia's influence in the AI industry is growing, with recent transformative deals involving Intel and OpenAI. The company is expanding beyond chip sales to play a larger role in shaping the AI market and infrastructure. Nvidia is investing $5 billion in Intel to leverage its manufacturing facilities and partnering with OpenAI with a $100 billion investment to build massive AI infrastructure. Despite challenges like sales restrictions to China, Nvidia's revenue continues to climb, with Q2 sales reaching $46.7 billion. Analysts suggest Nvidia stock is a worthwhile long-term investment due to its market dominance and strategic partnerships.

Nvidia expands AI reach with Intel and OpenAI partnerships

Nvidia is strengthening its position in the AI revolution through significant collaborations with Intel and OpenAI. The company is shifting from a hardware supplier to an AI infrastructure architect by investing in Intel's manufacturing capabilities and forming a major partnership with OpenAI. This collaboration aims to build the extensive AI infrastructure needed for advanced AI models, potentially requiring millions of Nvidia AI chips. Despite facing geopolitical challenges, particularly regarding sales to China, Nvidia's financials remain strong, with Q2 2025 revenue up 56% year over year.

GlobalFoundries stock gains investor interest after Corning partnership

GlobalFoundries is attracting investor interest in the AI data center space following a partnership with Corning. The companies plan to develop next-generation cores for data centers and high-performance computing applications, aiming for high bandwidth and minimal insertion loss. While GlobalFoundries' stock has been relatively flat, its silicon photonics platform is expected to benefit from this collaboration. The company trades at an attractive valuation, with a trailing P/E multiple of less than 27, and analysts are broadly bullish on its prospects.

Emerging markets rise on AI optimism, dollar weakens

Emerging-market stocks saw gains driven by optimism surrounding artificial intelligence, while developing currencies declined. The Taiwan stock exchange rose 0.2%, boosted by chipmaker TSMC following a deal between Advanced Micro Devices and OpenAI. The Hungarian forint was the biggest loser among emerging market currencies, falling against the euro and dollar. The South African rand also slipped as traders focused on government debt auctions. In debt markets, Turkey began selling its first eurobonds in three years.

OpenAI partners with AMD for massive AI hardware deal

OpenAI has signed a multi-billion dollar deal with AMD, Nvidia's main competitor, to secure computing power for its next-generation AI models. This partnership involves AMD delivering up to six gigawatts of GPU capacity, starting with its new MI300 chips, with the first facility expected by late 2026. AMD has also issued OpenAI warrants for 160 million shares, exercisable at one cent each, which will vest based on performance milestones, including a stock price target of $600. Analysts predict this deal could generate over $100 billion in revenue for AMD over four years, though OpenAI CEO Sam Altman states it is incremental to existing deals with Nvidia and Oracle.

Super X AI server launch boosts stock price

Super X AI Technology Limited's stock surged 31.8% to $12.00 per share following the launch of its new XN9160-B300 AI Server. This server is powered by NVIDIA's latest Blackwell B300 GPUs and is designed for high-performance AI training, inference, and scientific computing. The integration of NVIDIA's Blackwell architecture is expected to significantly enhance computational capabilities for demanding applications in hyperscale, scientific, and financial industries. This move highlights SuperX's commitment to providing advanced AI infrastructure solutions.

Oracle cloud margins questioned amid Nvidia chip deals

Oracle's stock fell following a report indicating lower profit margins on its AI cloud computing services that use Nvidia chips compared to its other business segments. The report cited internal documents showing a roughly 14% gross profit margin on these services, versus about 70% for the rest of Oracle's business. This comes despite Oracle's AI cloud infrastructure, equipped with Nvidia GPUs, contributing significantly to its recent stock rally and a five-year, $300 billion deal with OpenAI. Analysts suggest margins may improve as the business scales.

SES AI stock rises on new software platform launch

SES AI, a battery developer, saw its stock price increase by over 12% after unveiling its new Molecular Universe 1.0 (MU-1) software platform. This platform offers end-to-end assistance for battery material discovery, including access to research materials and search capabilities by molecule, formulation, and cell performance. MU-1 will be commercially available on October 20 and is already generating revenue from two enterprise customers. SES AI anticipates that the subscription-based model for MU-1 will provide a stream of recurring revenue and potentially expand into other molecule-dependent industries.

C3.ai faces class action lawsuit over CEO's health

C3.ai is facing a class action lawsuit filed by shareholders who allege they bought the company's stock at artificially inflated prices. The lawsuit claims that C3.ai and its executives made misleading statements and failed to disclose the full impact of the former CEO's health issues on the company's ability to close deals. Despite previous assurances from the former CEO about his continued involvement, C3.ai later revealed that his health challenges significantly affected sales performance and led to a reduction in revenue guidance. This news caused C3.ai's stock to drop nearly 11%.

Japanese AI startup Alt delisted after accounting scandal

Alt, a Japanese startup focused on AI-powered digital human clones and meeting transcription services, has been delisted from the Tokyo market less than 10 months after its IPO. The company faced an accounting scandal where investigations revealed that between 78% and 91% of its reported sales from 2021 to 2024 were inflated. Alt initially debuted with a valuation of about $130 million but lost nearly all its market value. The company has filed for civil rehabilitation and is expected to discontinue services for AI Gijiroku and altBRAIN.

Sources

• Dell raises long-term annual revenue, profit growth forecasts on strong AI server demand
• Dell raises growth targets for next four years on strong AI server demand
• Michael Dell says 'at some point there'll be too many' AI data centers, but not yet
• Is Nvidia Stock a Buy After AI Partnerships with Intel and OpenAI?
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• Emerging-Market Stocks Gain on AI Push, Forint Leads FX Losses
• Not Just Nvidia: OpenAI Signs Massive AI Hardware Deal With AMD
• Why SuperX AI Technology (SUPX) Is Up 31.8% After Launching NVIDIA Blackwell-Powered XN9160-B300 AI Server
• Oracle Stock Slides On Report Its Cloud Business Is Seeing Lower Margins On Nvidia Chips
• Why SES AI Stock Climbed Today @themotleyfool #stocks $SES
• C3.ai Hit with Class Action Lawsuit Over CEO’s Health-Related Impacts
• Japanese Startup Shows AI in a Name Is No Guarantee of Success