Altman Backs Nvidia Challenger

Altman Backs Nvidia Challenger

Sam Altman, CEO of OpenAI, is canvassing investors for Rain AI, a semiconductor start-up. Altman is promoting a $150m Series B round valuing it at $600m, according to Seeking Alpha. Rain AI develops processors that reportedly surpass Nvidia’s [NVDA] in terms of energy efficiency and power. OpenAI, backed by Microsoft [MSFT], uses artificial intelligence (AI) accelerators from Nvidia, processors from Advance Micro Devices [AMD], and is developing custom chips with Broadcom [AVGO] to train its large language models. 

Data Center Stock Spikes 

Vertiv [VRT] shares surged 14.6% to a record high of $141.12 after its Investor Day presentation highlighted strong prospects. The data center infrastructure provider reaffirmed fiscal year 2024 guidance and projected 2025 adjusted EPS of $3.50–3.60 and organic sales growth of 16–18%, exceeding estimates. Vertiv also increased its annual dividend by 50% to $0.15 per share and revised long-term targets to 12–14% annual revenue growth and 25% operating margins through 2029. 

Is Palantir a Trump Trade?

The government contractor’s [PLTR] market cap has surged over $23bn since Donald Trump’s election, the Financial Times reported, fueled by investor optimism over increased federal spending on security, immigration and space exploration. Its share price has nearly tripled in a year, reaching $61 and a $140bn valuation — surpassing defense giant Lockheed Martin’s [LMT]. Palantir provides advanced data analysis for governments and corporations, positioning itself as a key player in federal intelligence and defense initiatives.

AMD vs. NVDA: Who’s Winning the Chip Race?

Advanced Micro Devices and Nvidia are two of the world’s chipmaking giants. The firms compete in the AI chips and graphics card markets; this year has seen numerous product and technology launches as each tries to gain an advantage over the other. OPTO highlights some of AMD’s and Nvidia’s latest launches and discusses their recent financial performance. Could one or the other emerge victorious from the AI chip race? Or does the market have room enough for both?

Foxconn Bets on Server Boom

Taiwan’s Hon Hai Precision Industry [HNHPF], the parent company of Foxconn [FXCOF], secured a $1.1bn three-year loan, capitalizing on surging AI server demand. The loan will fund general corporate needs, Bloomberg reported. Seventeen banks, including local and international lenders, backed the loan. This move highlights Hon Hai’s financial strategy amid its role as a key supplier for Apple [AAPL] and AI hardware expansion; the firm is currently building the world’s largest server assembly plant in Mexico, to house Nvidia chips.

Keytruda Breakthrough 

Merck [MRK] achieved a milestone for its cancer therapy Keytruda by completing a Phase 3 trial for a subcutaneous formulation, showing comparable efficacy to the intravenous version. Generating $25bn in 2023, Keytruda accounts for over 40% of Merck’s sales. The pharmaceutical company plans to file global regulatory submissions “as soon as possible”, according to Seeking Alpha, as it prepares for Keytruda’s upcoming patent expirations and competitive pressures. 

Is Decelerating Revenue Growth a Concern for Snowflake?

A Montana-headquartered cloud storage company that sells data analytics and management software, Snowflake [SNOW] is the market leader in data warehousing. Its share price tumbled back in August as investors got cold feet over concerns of decelerating revenue growth. Nevertheless, the company is confident that investors will be rewarded with growth in the long term as its AI strategy pays off. Here, OPTO delves into the bull and bear cases for SNOW stock, and examines how it measures up to competitors.