So OpenAI is back at it again, hat in hand, asking for another massive pile of cash. This time they’re reportedly eyeing a cool $50 billion from Middle Eastern sovereign wealth funds. Because apparently burning through billions while promising the world AGI wasn’t expensive enough the first time around.
But here’s the thing – and this might actually matter for your portfolio – DA Davidson thinks this latest funding circus could be great news for four specific stocks. Yeah, the same analysts who’ve been pretty brutal about OpenAI’s habit of overpromising and asking for government handouts.
The “OpenAI Complex” Gets a Second Chance
Here’s what’s interesting: DA Davidson has identified what they call the “OpenAI complex” – basically the public companies that are tied to OpenAI’s success (or failure). We’re talking about Microsoft (MSFT), Nvidia (NVDA), Oracle (ORCL), and CoreWeave (CRWV).
These stocks have been getting hammered over the past five months, partly because investors started side-eyeing OpenAI’s business model. Fair enough – the company still hasn’t turned a profit despite all the ChatGPT hype.
Why This Time Might Be Different
The analysts think OpenAI has finally gotten its act together. They’re focusing on their core ChatGPT product instead of chasing every shiny AI object, and – get this – they’re actually considering ads. Revolutionary stuff, right? Who would’ve thought that a tech company might need, you know, revenue.
Plus, there’s been a management shift that suggests OpenAI is playing nicer with their big tech partners instead of trying to compete with everyone at once. Smart move when you need their money and infrastructure.
The Investment Angle
Here’s the kicker: DA Davidson thinks the market is currently pricing these OpenAI relationships as negative value. So when this funding round gets announced and the hype machine starts up again, these four stocks could see some serious upside.
Oracle got the biggest vote of confidence – DA Davidson actually upgraded them from Neutral to Buy. They’re betting that OpenAI will finally be able to follow through on that massive $500 billion Stargate data center project with Oracle.
The Reality Check
Look, this is still a bet on hype more than fundamentals. OpenAI’s valuation could hit $750-850 billion with this round, which is… a lot for a company that’s never made money. But if you believe AI is the future (and the market certainly seems to), these four stocks give you exposure without having to wait for an OpenAI IPO that may never come.
The smart money seems to think that once investors start seeing OpenAI as a winner again, the whole ecosystem gets a lift. Whether that’s worth the risk is up to you – but at least now you know which stocks to watch when the OpenAI hype train leaves the station again.