Nvidia's $100B Commitment to OpenAI: 10 Chip Stocks to Watch

Nvidia plans to invest up to $100B in Microsoft-backed OpenAI, focusing on the construction and deployment of advanced AI chips. This significant commitment highlights the growing importance of the semiconductor sector and could impact other chip stocks. Ten chip stocks to watch in the aftermath of Nvidia's announcement include Micron Technology (MU), Intel (INTC), Advanced Micro Devices (AMD), and Taiwan Semiconductor Manufacturing Company (TSM).

Nvidia's (NASDAQ:NVDA) recent announcement to invest up to $100 billion in Microsoft (MSFT)-backed OpenAI has sparked significant interest in the semiconductor sector. The funds will be allocated to support the construction and deployment of advanced AI data centers, powered by Nvidia systems. This substantial commitment underscores Nvidia's dominant role in the next generation of artificial intelligence infrastructure 10 chip stocks to watch after Nvidia’s $100B commitment to OpenAI^[1].

The announcement has positively impacted the broader semiconductor industry, with Nvidia shares surging over 4% higher, and the tech-heavy Nasdaq Composite (COMP:IND) experiencing gains. Market watchers have highlighted the top 10 semiconductor stocks with market capitalizations of at least $10 billion, ranked according to quant metrics. Micron Technology (MU), Taiwan Semiconductor Manufacturing Company (TSM), and Analog Devices (ADI) top the list, with quant ratings of 4.98, 4.84, and 4.33, respectively 10 chip stocks to watch after Nvidia’s $100B commitment to OpenAI^[1].

The Nvidia-Intel partnership, which involves a $5 billion investment by Nvidia in Intel, has also drawn attention. This collaboration aims to challenge core markets served by Advanced Micro Devices (AMD), highlighting the intensifying competition among major semiconductor players Does Nvidia and Intel’s Chip Partnership Alter the Competitive Outlook for AMD (AMD) in AI Markets?^[2]. The partnership could influence AMD's investment narrative, particularly regarding competitive risks in the AI market. While AMD maintains a strong focus on rolling out new AI, data center, and edge computing technologies, the heightened competition could pressure its pricing and margins in the near term Does Nvidia and Intel’s Chip Partnership Alter the Competitive Outlook for AMD (AMD) in AI Markets?^[2].

Investors should closely monitor AMD's progress against evolving industry threats, particularly its successful ramp of Instinct AI accelerators and EPYC CPUs within cloud and enterprise segments. The company anticipates $46.2 billion in revenue and $9.0 billion in earnings by 2028, implying an annual revenue growth rate of 18.5% Does Nvidia and Intel’s Chip Partnership Alter the Competitive Outlook for AMD (AMD) in AI Markets?^[2]. However, ongoing concerns about export restrictions, manufacturing bottlenecks, and competitive pressures could impact AMD's growth and profitability.

Other notable semiconductor stocks to watch include Intel (INTC), First Solar (FSLR), Rambus (RMBS), and Credo Technology Group Holding (CRDO). These companies are likely to be influenced by the growing demand for advanced AI chips and the intensifying competition in the semiconductor industry.

In conclusion, Nvidia's significant investment in OpenAI highlights the growing importance of the semiconductor sector. Investors should closely monitor the performance of key semiconductor stocks, including Micron Technology, Intel, Advanced Micro Devices, and Taiwan Semiconductor Manufacturing Company, as they navigate the evolving landscape of AI and data center technologies.