Bloomberg Daybreak: Asia Edition AMD-OpenAI Deal Sparks Rally in Equities
9 snips
Oct 7, 2025 Ed Butowsky, managing partner at Chapwood Investments, discusses the excitement surrounding Advanced Micro Devices' deal with OpenAI, exploring potential revenue growth and the risks of an AI bubble. He highlights the market's reactions, including rising gold prices and shifts in the dollar's value. Gearoid Reidy, a Bloomberg Opinion columnist, analyzes the implications of Sanae Takaichi becoming Japan's first female leader, her economic views, and public sentiment, while addressing concerns about her pragmatic approach and the challenges ahead in forming a coalition.
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AMD-OpenAI Deal Drives Chip Rally
- AMD's multi-year deal to supply OpenAI with GPUs propelled its stock up ~24% and lifted the semiconductor index.
- The pact may lead to OpenAI taking a large stake in AMD, tying AMD's fortunes more closely to AI demand.
AI Spending Frenzy May Not Equal Profits
- Ed Butowski warns AI spending is frenetic and may mirror past tech revolutions where commercializing profit proved hard.
- He says making money in AI will be difficult despite massive infrastructure spending and investor enthusiasm.
Focus On Guidance And CapEx Signals
- Watch guidance and CapEx signals from the big tech names when earnings arrive because market reaction will hinge on future spending.
- Expect sharp moves if Magnificent Seven firms curb capital expenditure guidance.