Nasdaq 100: AMD Soars 25% on OpenAI Deal, Nvidia Slips as Tech Stocks Diverge

Nvidia’s stock dipped 1% premarket following the news, reflecting concerns about increasing competition. Just two weeks ago, Nvidia signed its own $100 billion supply-and-equity deal with OpenAI. Now, with AMD and Broadcom joining as alternate suppliers, OpenAI appears to be diversifying hardware sources to reduce single-vendor reliance.

How Are Other Tech Players Positioned?

Oracle is helping build OpenAI’s data center sites, while Broadcom is in talks to develop custom chips for future AI models. This “circular economy” of AI hardware and investment highlights the concentrated nature of the AI ecosystem, where capital, compute, and equity flow within a tight group of firms. Analysts warn that any supply chain stress could reverberate across this closed loop.

What Should Traders Watch This Week?

With AMD now validated as a key AI hardware player, attention will turn to follow-through buying and possible re-ratings from analysts. Traders should monitor sector rotation within semiconductors and potential responses from Nvidia and other chipmakers. Key economic data this week includes jobless claims and Fed commentary, which could further sway sentiment in tech-heavy indexes.