5 U.S. Companies Surfing the OpenAI Wave

OpenAI has been making all the big moves in recent months.

Even though it’s not a listed company yet, it has had a huge influence on many AI-related companies.

This week, we are taking a good look at the companies that have invested in OpenAI, and also the companies OpenAI has invested in.

1. Nvidia $NVDA ( ▼ 0.11% )  

We have all heard about Nvidia. It is the poster child for the Artificial Intelligence (AI) sector boom in recent year.

It makes and sells computer processors, GPUs, chips and other multimedia components.

• Computing and network sector is its biggest revenue source at 90%.

• The U.S. is still its biggest revenue contributor at 47%, followed by Singapore (18%, but mainly for re-exporting to other countries), and Taiwan (16%).

However, its US$100 billion investment into OpenAI could be big for the company.

• In exchange for the investment, OpenAI will be ‘leasing’ Nvidia GPUs to deploy up to 10 gigawatt of AI data centres.

Nvidia will now have a long-term regular customer in OpenAI to buy and lease its GPU processors.

Financially, Nvidia’s revenue have doubled to US$131 billion in 2024 from US$61 billion in 2023.

• Profits nearly tripled to US$73 billion from US$30 billion over the same period.

Nvidia is trading at price-to-earnings ratio (PER) of 52 times compared to its historical average of 73.3 times.

Target price for Nvidia is at US$221 with an upside of +17.5%.

2. AMD $AMD ( ▲ 9.4% )  

AMD produces and sells semiconductors and GPUs, mainly for the AI data centre sector now.

• Data centre segment makes up 48% of its revenue, followed by client (27%) and embedded (14%).

• United States is the biggest contributor at 33% of revenue. China takes up the second spot at 24%.

OpenAI has recently invested in AMD that could potentially give it a 10% stake in the future.

• AMD issued warrants that could give OpenAI that stake in the future.

• In exchange, OpenAI will be using AMD’s Instinct GPUs to deploy 6 gigawatts of computing power.

Similar to Nvidia, OpenAI will be a long-term customer for AMD.

AMD does not have the same meteoric financial performance of Nvidia, but it has been strong in the past couple of years.

• Revenue grew by 13.7% in 2024. Meanwhile, that growth has accelerated to an average of 33% in 2025.

• Profits have doubled to US$1.6 billion in 2024 from US$854 million in 2023.

Because of the investment by OpenAI, AMD is trading at a ridiculous PER of 124 times.

Analysts have AMD at a target price of US$232 with an upside of +7.5%.

3. Oracle $ORCL ( ▲ 1.55% )  

Oracle provides various services to companies such as cloud computing, licensing, hardware and software.

• Its cloud and licensing business makes up 86% of its revenue.

• Meanwhile, the U.S. remains their biggest contributor at 56%, followed by Europe (17%), and Asia (9%).

Oracle set off investors’ wallets when it announced that it had US$455 billion in performance obligations remaining for its AI clients.

• OpenAI is its biggest customer at US$300 billion over the next five years.

If you are wondering how big is this, Oracle recorded US$57 billion in revenue in 2024. So, this brings the project pipeline to almost 10 years worth of revenue.

And in 2025, revenue grew at an average of 12% while profits grew by 4.5%.

• Recently, investors were a bit concerned that Oracle’s Nvidia cloud business only recorded a gross profit margin of 14%.

• However, that should improve with more scale coming from the AI sector in the future.

Oracle is currently trading at a dividend yield of 0.7% with a high PER of 68 times.

Analysts have the company at a target price of US$340 with an upside of +10.5%.

4. Broadcom $AVGO ( ▲ 2.09% )  

Broadcom designs, develops and sells a myriad of semiconductors, enterprise systems and solutions.

• Semiconductor solutions make up the biggest segment at 58% of revenue, while infrastructure software contributes the remaining.

• In terms of countries exposure, Broadcom is well-diversified with the U.S. making up 25%, followed by China (20%), Singapore (18%) and Asia (16%).

OpenAI and Broadcom will be collaborating to deliver 10 gigawatt of custom AI accelerators.

• OpenAI will be designing its own accelerator and systems, a step-up from its reliance on Nvidia currently.

• Broadcom will offer Ethernet and connectivity solutions to OpenAI.

Similar to many semiconductor and chip companies, Broadcom had a strong 2024 in terms of scaling up.

• Revenue grew by 44% to US$51.6 billion in 2024.

• However, profits are down by 58% to US$5.9 billion.

Dividend yield is at 0.7% currently, with PER trading at a hefty 82 times compared to its historical average of 58 times.

Target price is set at US$389 with an upside of +9.2%.

5. Softbank $SFTBY ( ▲ 5.6% )  

Finally, Softbank.

It is an investment holding company with many hands in many sectors. Think of it like Warren Buffett’s Berkshire Hathaway.

In June 2025, Softbank invested US$33 billion into OpenAI.

Furthermore, both OpenAI and Softbank CEO Masayoshi Son will be leading the Stargate project worth US$500 billion.

• The project will invest in the AI sector, mainly in data centres.

Softbank’s financial performance has been steady.

• Revenue grew by 7.2% to JPY7.2 trillion in 2024.

• Softbank reversed to a profit of JPY1.1 trillion in 2024.

Softbank is currently trading at a PER of 19.3 times compared to the historical average of 16.2 times.

Target price is set at JPY23,125 with an upside of +10.8%.

Cheers,

James Yeo