So OpenAI is apparently about to raise another mountain of cash – we’re talking $50 billion from Middle Eastern sovereign wealth funds, because nothing says “artificial intelligence revolution” like oil money, right?
Here’s the thing though: while Sam Altman and crew are out there collecting checks like they’re running a very expensive lemonade stand, some actual public companies might actually benefit from all this hype. DA Davidson just dropped a note saying four stocks could ride this wave, and honestly, it’s not the worst logic I’ve heard on Wall Street this week.
The “We Told You So” Moment
DA Davidson’s analysts have been pretty brutal about OpenAI lately, basically calling them out for overpromising and asking for government handouts while being “spread too thin.” Harsh but fair? They think this behavior has been dragging down stocks like Nvidia, Microsoft, CoreWeave, and Oracle for months.
But here’s where it gets interesting – they think OpenAI might actually be getting its act together. The company is apparently focusing on its core ChatGPT business instead of chasing every shiny AI object, and they’re even considering ads (because nothing says “cutting-edge AI” like banner ads, but hey, money is money).
The Four Horsemen of the AI-pocalypse
So which stocks are we talking about? The usual suspects:
Nvidia (NVDA) – The picks-and-shovels play of the AI gold rush. They make the chips that power all this AI madness, so when OpenAI gets flush with cash, guess who’s selling them the hardware?
Microsoft (MSFT) – They’ve got their fingers all over OpenAI through their partnership, so when OpenAI does well, Microsoft tends to do well. It’s like being the cool kid’s best friend in high school.
Oracle (ORCL) – They’re building $500 billion worth of data centers with OpenAI through something called “Project Stargate” (yes, really). DA Davidson even upgraded them to Buy because of this OpenAI optimism.
CoreWeave (CRWV) – The cloud infrastructure play that’s been quietly powering a lot of AI workloads. Think of them as the behind-the-scenes crew that makes the magic happen.
The Reality Check
Now, before you go YOLO-ing your retirement fund, remember that OpenAI still hasn’t turned a profit. They’re burning through cash faster than a crypto bro in 2021. But the analysts think this new funding round could change the narrative – especially since Google’s Gemini has been breathing down ChatGPT’s neck lately.
The theory is simple: fresh cash means OpenAI can actually deliver on its promises, which means the companies in its orbit stop looking like they’re tied to a sinking ship. Whether that actually happens? Well, that’s why they call it investing and not “guaranteed money printing.”
DA Davidson thinks these stocks could “re-rate significantly” if investors start seeing OpenAI as a winner again. Translation: if the hype train gets back on track, these stocks could see some serious upside.
The Bottom Line
Look, betting on AI stocks because of OpenAI funding rounds isn’t exactly revolutionary thinking. But sometimes the obvious play is obvious for a reason. If you believe AI is going to keep eating the world (and let’s be honest, it probably is), then the companies providing the infrastructure, partnerships, and technology might be worth a look.
Just remember: past performance doesn’t guarantee future results, AI valuations are still pretty wild, and Sam Altman’s fundraising abilities, while impressive, don’t automatically translate to profits. But hey, at least now you know which stocks the smart money is watching.