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AMD & Palantir: Could They Outshine Broadcom?
9 Oct
Summary
- AMD's OpenAI deal targets tens of billions in revenue.
- Palantir's commercial revenue surged 149% year over year.
- Nvidia dominates AI chips, but AMD seeks a growing slice.
Advanced Micro Devices (AMD) is on a trajectory that could see it significantly challenge Broadcom's massive valuation. The company's deal with OpenAI for 6 gigawatts of GPU capacity, with its new MI450 chips launching in the second half of 2026, is expected to generate tens of billions in revenue. While Nvidia remains the AI chip market leader, AMD's strategy focuses on capturing a substantial share of this rapidly expanding market.
Palantir Technologies presents a more aggressive growth opportunity. The company reported a 149% surge in its U.S. commercial business revenue, alongside a raised full-year guidance for commercial revenue growth exceeding 134%. Palantir's expanding software footprint in both government intelligence and commercial supply chains offers a durable competitive advantage.
Risks remain for both companies. AMD must execute flawlessly against competitors with established market positions. Palantir's high valuation assumes sustained hypergrowth, making it vulnerable to even minor setbacks. However, the underlying business strength in both companies suggests they could outpace these challenges over a five-year horizon.
