OpenAI Is Reportedly Raising $30 Billion. Which Chip Stock Gains the Most?

Source The Motley Fool

Key Points

  • OpenAI is reportedly seeking around $30 billion in a round that might value it at over $1.4 trillion.

  • Nvidia agreed to guarantee up to $105 billion of obligations at an Ohio campus that OpenAI will lease.

  • Broadcom expects OpenAI to become its second-largest custom-chip customer in 2028.

  • Motley Fool Issues Rare "Total Conviction" Buy Alert ›

OpenAI is raising cash again. The ChatGPT maker is seeking around $30 billion in a round that might value it at over $1.4 trillion, Reuters said on Oct. 19. That's up from an $852 billion valuation in March. The talks are still ongoing, though, so nothing's closed.

For chip investors, the bigger number might be what OpenAI has already lined up. In 2025, it announced plans for 26 gigawatts of computing capacity with Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), and Broadcom (NASDAQ:AVGO). By comparison, OpenAI is reportedly pitching investors on annualized revenue of around $50 billion.

Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »

In other words, new cash directly affects whether those plans get paid for. And each of these chip stocks has a different amount riding on it.

The ChatGPT logo on a smartphone in front of the OpenAI logo.

Image source: Getty Images.

Nvidia's growth doesn't rely on OpenAI

Nvidia's September 2025 letter of intent covered at least 10 gigawatts of its systems, and Nvidia planned to invest up to $100 billion in OpenAI as each gigawatt was deployed.

The backing has since changed form. Nvidia put $30 billion into OpenAI's March round. Then in August, it agreed to guarantee up to $105 billion of obligations at an Ohio data center campus that will house Nvidia hardware under 20-year leases to OpenAI. The first guarantees aren't expected to take effect until fiscal 2029, and Nvidia's exposure drops as OpenAI pays its rent.

A well-funded OpenAI, then, lowers the odds that guarantee ever costs Nvidia anything.

Showing how much is at stake, Nvidia said every generation of its systems at that one site could mean $150 billion to $200 billion in revenue. Yet Nvidia isn't waiting on OpenAI. Its revenue climbed 106% year over year to $96.2 billion in the fiscal 2027 second quarter, which ended July 26.

Based on the consensus estimate for fiscal 2028 (the year through January 2028), Nvidia's price-to-earnings ratio is about 14 with shares near $217 as I write. I think that's a modest price for this much growth.

AMD: the most exposed of the three

AMD's Oct. 6, 2025, deal covers 6 gigawatts of its graphics processing units (GPUs), starting with 1 gigawatt in the second half of 2026. Chief financial officer Jean Hu put the expected payoff at "tens of billions of dollars in revenue for AMD."

"We are very happy with our strategic anchor customers in OpenAI, Meta, and Anthropic. They are all in the process of ramping," CEO Lisa Su said on AMD's second-quarter earnings call in August.

Meta Platforms signed a matching 6-gigawatt deal, while Anthropic's covers up to 2 gigawatts. That leaves OpenAI with around 43% of the gigawatts across AMD's three anchor customers. And management expects data center revenue to more than double in 2027, after second-quarter sales for the segment climbed 107% year over year to $6.7 billion.

The stock already prices much of that in. At roughly $539 as I write, AMD's price-to-earnings ratio on 2027 consensus estimates is near 34 -- more than twice Nvidia's.

Broadcom is still waiting on the financing

Broadcom's 10-gigawatt deal announced Oct. 13, 2025, has OpenAI designing its own artificial intelligence (AI) chips and Broadcom developing and deploying them through 2029.

Broadcom shipped Jalapeño, OpenAI's first custom accelerator, in the quarter ending Aug. 2. On the Sept. 2 earnings call, CEO Hock Tan said Jalapeño is on track for 1.3 gigawatts of deployments in 2027. And he sees OpenAI deploying over 5 gigawatts in 2028, enough to make it Broadcom's second-largest custom-chip customer.

That's when Broadcom's forecast makes its biggest dollar jump. Management expects AI chip revenue to about double to $115 billion in fiscal 2027, then double again to $230 billion in fiscal 2028.

But the money behind OpenAI's deployments is less settled. In June, Broadcom set up a financing vehicle with Apollo Global Management and Blackstone for OpenAI and Anthropic, and the first $35 billion goes to Anthropic's expansion. Asked about financing on the call, Tan mentioned Anthropic's path to an initial public offering.

"OpenAI, we still have less clarity, but it's different," he said.

On analysts' fiscal 2027 estimates, Broadcom's price-to-earnings ratio is around 17 with shares near $335 as of this writing.

Which stock gains the most?

Sure, a reported funding round isn't cash in the bank. And $30 billion is small next to OpenAI's chip plans.

Yet if the round closes, I think Broadcom gains the most, because its OpenAI financing is the least settled, and Nvidia arguably gains the least. I'd consider buying all three stocks. But with so much of AMD's plan riding on one customer at over twice Nvidia's price, I'd hold AMD as the smallest position.

Should you buy stock in Nvidia right now?

Before you buy stock in Nvidia, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $376,696!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,333,920!*

Now, it’s worth noting Stock Advisor’s total average return is 925% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of October 20, 2026.

Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Blackstone, Broadcom, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Today’s Market Recap: U.S. Stocks Rebound as Nasdaq Gains 1.11%, Memory Chip Stocks Rally, SanDisk Jumps 5.5%U.S. stocks rebounded on Monday, October 19, following a sharp sell-off in AI infrastructure stocks last week, lifting the Nasdaq Composite and S&P 500.At the clo
Author  TradingKey
Yesterday 01: 25
U.S. stocks rebounded on Monday, October 19, following a sharp sell-off in AI infrastructure stocks last week, lifting the Nasdaq Composite and S&P 500.At the clo
placeholder
Gold Price Analysis Today | Forex Gold Analysis | XAU/USD Analysis - October 20, 2026Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 20, 2026. Read on for the details.
Author  Mitrade
22 hours ago
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 20, 2026. Read on for the details.
placeholder
Dollar presses 102 as the 10-year yield sits at 5.14% — and October hike odds are only 17%The dollar index closed at 101.99 (+0.20%) on Monday after briefly topping 102.07, while the 10-year Treasury yield rose to 5.14% and the 2-year hit 4.774% — yet futures price only about a 17% chance of a hike at the October 27-28 FOMC, versus roughly 90% for December. The driver is a global bond selloff, not a Fed repricing: France's 10-year OAT jumped to 4.84% ~ 4.94% and the OAT-Bund spread widened to 140 ~ 146bp. Here are the levels, the cross-asset read-through and what to watch.
Author  Irene Q.
20 hours ago
The dollar index closed at 101.99 (+0.20%) on Monday after briefly topping 102.07, while the 10-year Treasury yield rose to 5.14% and the 2-year hit 4.774% — yet futures price only about a 17% chance of a hike at the October 27-28 FOMC, versus roughly 90% for December. The driver is a global bond selloff, not a Fed repricing: France's 10-year OAT jumped to 4.84% ~ 4.94% and the OAT-Bund spread widened to 140 ~ 146bp. Here are the levels, the cross-asset read-through and what to watch.
placeholder
Netflix earnings land tonight: the $70 line that decides whether the AI rebound has legsNetflix reports Q3 after the US close on October 20 with the stock at $69.85 (-0.96%), just below the $70 round number and far from its 52-week high of $124.86. Consensus looks for revenue near $12.87bn (+12%), EPS around $0.82 and a 33.2% operating margin, while options imply an 8.4% one-day move. With the Nasdaq up 1.11% and the SOX up 1.61% after an eight-day slide, the result is the first real test of the AI-led rebound. Here are the numbers, the $65 / $70 / $75 levels and the three checks that matter.
Author  Irene Q.
19 hours ago
Netflix reports Q3 after the US close on October 20 with the stock at $69.85 (-0.96%), just below the $70 round number and far from its 52-week high of $124.86. Consensus looks for revenue near $12.87bn (+12%), EPS around $0.82 and a 33.2% operating margin, while options imply an 8.4% one-day move. With the Nasdaq up 1.11% and the SOX up 1.61% after an eight-day slide, the result is the first real test of the AI-led rebound. Here are the numbers, the $65 / $70 / $75 levels and the three checks that matter.
placeholder
Tesla Q3 Earnings Preview: Can Auto Margins Stabilize? Wall Street’s Highest Price Target at $550Tesla (TSLA) will report its third-quarter 2026 financial results after the U.S. stock market close on October 21, Eastern Time, and host an earnings conference call at 17:30 that day. Th
Author  TradingKey
15 hours ago
Tesla (TSLA) will report its third-quarter 2026 financial results after the U.S. stock market close on October 21, Eastern Time, and host an earnings conference call at 17:30 that day. Th
goTop
quote