openai, amd and nvidia Updates

The artificial intelligence sector continues to see significant investment and development, with companies like Broadcom positioning themselves as major players. Broadcom's custom AI accelerator chips, known as XPUs, are designed for specific tasks and have secured deals with major clients including OpenAI and AMD. This focus has driven a substantial increase in Broadcom's AI revenue, which reached over $5 billion last quarter, and analysts suggest the company could be a future $2 trillion AI giant. Meanwhile, Nvidia maintains a dominant position in the discrete GPU market, holding over 90% share, with its CUDA platform creating a strong developer lock-in. While AMD presents competition with its Instinct MI300X GPUs, Nvidia's Blackwell chips still lead for large-scale AI workloads. Brookfield Corporation is making substantial investments in AI infrastructure, identifying a $7 trillion opportunity over the next decade. The company is building data centers and renewable energy solutions, securing deals with Google for hydropower and Microsoft for renewable power, and plans to invest $200 billion in AI factories. In the realm of AI financing, an analyst suggests shorting companies like Blue Owl Capital, arguing that those providing financing face more risk than the companies building the AI infrastructure itself. Global defense stocks are also experiencing gains in 2025, fueled by AI's role in autonomous drones for surveillance and precision strikes. AI-powered trading models, such as TradeSmith's 'Super AI' and Investing.com's tool, are demonstrating strong performance, identifying timely stock picks like AMD, Nvidia, and Broadcom. Billionaire Steven Cohen's hedge fund has shifted its investment from SoundHound AI to Nvidia, likely due to competition and SoundHound's lack of profitability, while Nvidia's position as a key AI chip supplier remains attractive.

Key Takeaways

• Broadcom's custom AI accelerator chips (XPUs) are gaining traction with clients like OpenAI and AMD, contributing to over $5 billion in AI revenue last quarter and positioning the company as a potential $2 trillion AI stock.
• Nvidia continues to dominate the discrete GPU market with over 90% share, supported by its proprietary CUDA platform, though AMD offers competition with its Instinct MI300X GPUs.
• Brookfield Corporation is investing heavily in AI infrastructure, anticipating a $7 trillion market opportunity over the next decade, including data centers and renewable energy solutions for Google and Microsoft.
• An analyst recommends shorting AI financing companies like Blue Owl Capital, suggesting that investors focus on companies building AI infrastructure instead due to higher risk in financing.
• Global defense stocks are seeing gains in 2025, driven by AI's impact on autonomous drones for surveillance and precision strikes.
• AI-powered trading models, such as TradeSmith's 'Super AI' and Investing.com's tool, have shown strong performance, with successful picks including AMD, Nvidia, and Broadcom.
• Billionaire Steven Cohen's hedge fund has divested from SoundHound AI and increased its investment in Nvidia, citing competition and profitability concerns for SoundHound.
• Bank of America has raised its price target for AMD to $300, recognizing its significant role in the multi-hundred billion dollar AI market across various sectors.
• Broadcom's Jericho4 router is designed to connect over a million AI chips in data centers, highlighting the company's role in AI infrastructure.
• TradeSmith's AI model analyzes over 150 financial models to project stock price movements up to 21 days in advance, achieving significant annual gains.

Broadcom: The Smart Growth Stock for Your $1,000 Investment

Broadcom, a networking giant, is a smart growth stock to consider for a $1,000 investment. The company's AI business is driving significant growth, with demand for its Tomahawk switches and Jericho routers soaring. Broadcom recently launched the Jericho4 router, which connects over a million AI chips in data centers. Its custom AI accelerator chips, called XPUs, are designed for specific tasks and have secured a major deal with OpenAI. This AI focus has led to a 63% increase in AI revenue, reaching over $5 billion last quarter.

Broadcom: Could This AI Stock Reach $2 Trillion?

Broadcom is a strong contender to become the next $2 trillion AI giant, potentially surpassing its current $1.7 trillion valuation. The company's custom AI accelerator chips, known as XPUs, are tailored for specific workloads and are gaining traction with major clients like OpenAI and AMD. While Nvidia still leads in general-purpose AI chips, Broadcom's specialized approach offers a competitive edge. Beyond AI, Broadcom has a diverse business including virtual desktop software and cybersecurity, contributing to its overall revenue.

Broadcom's AI Potential: A Path to $2 Trillion Valuation

Broadcom is positioned as a potential next $2 trillion AI stock, challenging Nvidia's dominance with its custom AI accelerator chips called XPUs. These specialized chips are designed collaboratively with customers for specific tasks, offering a unique advantage. Broadcom's AI revenue grew significantly, reaching $5.2 billion in its fiscal 2025 third quarter. The company's diversified business, including VMware software and cybersecurity, adds to its strength. Despite a premium stock valuation, Broadcom's growth in AI infrastructure could drive it towards the $2 trillion market cap.

Brookfield Corporation Invests $7 Trillion in AI Infrastructure

Brookfield Corporation sees a massive $7 trillion opportunity in building AI infrastructure over the next decade. The company is investing heavily across data centers, renewable power, and AI factories to support the growing demand for AI technology. Brookfield's expertise in real estate, infrastructure, and power solutions positions it well to capitalize on this trend. Its subsidiaries, Brookfield Infrastructure and Brookfield Renewable, are already involved in significant projects, including deals with Google and Microsoft. This strategic focus on AI infrastructure is expected to drive robust growth and strong returns for Brookfield Corporation.

Brookfield Corporation Leads $7 Trillion AI Infrastructure Investment

Brookfield Corporation is making significant investments in AI infrastructure, anticipating a $7 trillion market opportunity over the next ten years. The company is leveraging its expertise in real estate, infrastructure, and power to build the necessary backbone for AI development. This includes data centers and renewable energy solutions to power AI technologies. Brookfield's subsidiaries are already securing major deals, such as supplying Google with hydropower and Microsoft with renewable power. The company plans to invest $200 billion in AI factories, aiming for 25% annualized earnings-per-share growth.

Nvidia Stock: Still a Buy After AI Rally?

Nvidia remains a compelling investment despite its significant rally, holding over 90% of the discrete GPU market. Its proprietary CUDA platform locks in developers, creating a strong competitive advantage. While AMD offers a challenge with its Instinct MI300X GPUs, Nvidia's Blackwell chips still outperform for large-scale AI workloads. Analysts project strong revenue and earnings growth for Nvidia, with its stock appearing reasonably valued at 30 times next year's earnings. However, potential risks include U.S. export restrictions to China and increasing competition.

Analyst Suggests Shorting Blue Owl Capital for AI Financing Risks

James Van Geelen, founder of Citrini Research, suggests hedging risks associated with AI circular financing by shorting Blue Owl Capital and other private credit companies. He believes that while companies building AI infrastructure have unlimited upside, those providing financing face limited gains and significant downside if projects fail. Van Geelen recommends investing in the actual companies developing AI infrastructure instead.

Bank of America Boosts AMD Price Target to $300

Bank of America has raised its price target for Advanced Micro Devices (AMD) to $300 per share, maintaining a 'Buy' rating. The firm sees AMD as a significant player in the AI market, serving a multi-hundred billion dollar addressable market across PC, server, gaming, and deep learning. The analyst cited November 11th as a key upcoming catalyst for the stock.

AI Fuels Global Defense Stock Gains in 2025

Global defense stocks have seen significant gains in 2025, driven by advancements in artificial intelligence technology. AI is revolutionizing warfare, particularly through autonomous drones used for surveillance, reconnaissance, and precision strikes. Companies like VisionWave Holdings Inc. are experiencing momentum, with Nasdaq Dorsey Wright upgrading its technical attribute to 'Strong Buy'. Other defense sector developments include Pratt & Whitney's engine advancements and collaborations between Red Cat Holdings and AeroVironment for drone deployment.

TradeSmith's AI Portfolio Outperforms Market

TradeSmith's 'Super AI' trading model has demonstrated impressive results, achieving an average annual gain of 374% over five years with a 5-stock portfolio. The AI model analyzes over 150 financial models to project stock price movements up to 21 days in advance. Recent successful predictions include significant gains for Opendoor, Wingstop, and Tesla. TradeSmith is expanding its AI coverage to global markets and introducing new US strategies, aiming to provide hedge-fund-level insights to everyday investors.

Steven Cohen Ditches SoundHound AI for Nvidia

Billionaire Steven Cohen's hedge fund, Point72, has completely sold its stake in SoundHound AI and significantly increased its investment in Nvidia. Point72 likely exited SoundHound AI due to intense competition from big tech companies like Apple and Google in the voice-recognition space, and SoundHound's lack of profitability. In contrast, Nvidia's position as a key supplier of AI chips, its upcoming stock split, and strong margin potential make it an attractive investment for Cohen.

Investing.com AI Stock Picks Show Strong Performance

Investing.com's AI-powered stock-picking tool has delivered strong results, achieving a 148% gain and an 87% hit rate on tech picks in September. The AI identified timely winners like AMD, Nvidia, and Broadcom, outperforming the S&P 500. For October, the AI has updated its strategies with new picks across 18 countries and five new US strategies. The AI analyzes over 150 financial models using 15 years of global data to identify potential stock growth.

Sources

• The Smartest Growth Stock to Buy With $1,000 Right Now @themotleyfool #stocks $AVGO
• Prediction: This Artificial Intelligence (AI) Stock Could Be the Next $2 Trillion Giant @themotleyfool #stocks $AVGO $NVDA
• Prediction: This Artificial Intelligence (AI) Stock Could Be the Next $2 Trillion Giant
• 1 Top Stock to Buy to Cash In on This Once-in-a-Generation $7 Trillion AI Investment Opportunity
• 1 Top Stock to Buy to Cash In on This Once-in-a-Generation $7 Trillion AI Investment Opportunity @themotleyfool #stocks $BN $MSFT $GOOGL $BIP $BEP $GOOG $BEPC $BIPC
• Is This AI Stock Still Worth Buying After Its Massive Rally? @themotleyfool #stocks $NVDA $AMD
• Analyst on How to Hedge AI Circular Financing Risks: Short Blue Owl Capital (OWL)
• Bank of America Raises AMD (AMD) Price Target to $300, Citing 11/11 as Next Major Catalyst
• Global Defense Stocks Have Rocketed Higher In 2025 as Artificial Intelligence Technology Fueling Big Gains
• How This 5-Stock AI Portfolio Outperformed Every Index
• Billionaire Steven Cohen Sold 100% of Point72's Stake in SoundHound AI and Is Piling Into This Supercharged Stock-Split Stock
• 148%+ gain, 87% hit rate: A fresh list of AI-picked stocks for October is NOW LIVE By Investing.com