AMD, NetraMark, Adobe – AI latecomers with significant catch-up potential

AMD – Sensational news and share price explosion

AMD shares exploded by a whopping 25% in pre-market trading after the announcement of a new billion-dollar deal in the semiconductor industry. According to the announcement, US chip manufacturer AMD secured a mega order from AI pioneer OpenAI. Starting in the second half of 2026, AMD will supply hundreds of thousands of high-performance GPUs to OpenAI. The chips are expected to provide a total output of six gigawatts and form the backbone of new data centers over several years. The first step will be a 1 GW facility based on the upcoming MI450 chip series, with which OpenAI aims to generate revenue starting in 2026.

AMD CFO Jean Hu speaks of a "strategic milestone" that is expected to significantly increase non-GAAP earnings per share and strengthen the Company's position in the AI market in the long term. CEO Lisa Su is also euphoric: "This partnership is a true win-win situation and takes the global AI ecosystem to a new level."

Another interesting fact is that OpenAI will have the option to acquire up to a 10% stake in AMD. Specifically, the ChatGPT developer can acquire up to 160 million AMD shares for only USD 0.01 each as part of the deal, provided that agreed milestones are reached. The first step will take place after delivery of the MI450 chips, with further tranches depending on ambitious price targets of up to USD 600 per share.

"This partnership is an important step toward building the computing capacity needed to realize the full potential of AI," commented Sam Altman, co-founder and CEO of OpenAI, on the collaboration on Reuters. "AMD's leadership in high-performance chips will enable us to accelerate progress and bring the benefits of advanced AI to everyone faster."

NetraMark – Strong cooperation

NetraMark, an innovator in explainable artificial intelligence for the pharmaceutical and biotech industries, is offering a second buying opportunity after its initial upward momentum. After the stock rose by over 65% to EUR 1.11 between the end of April and August, it is currently undergoing consolidation. There is a striking support zone in the EUR 0.80 range, which has been successfully defended. The momentum is likely to receive a tailwind due to the positive indicator situation. Both the RSI and the MACD are on the verge of new buy signals.

Looking at developments over the past few months, the Company, currently valued at around EUR 70 million, appears poised for its next quantum leap. With the launch of NetraAI 2.0, NetraMark is making a significant step toward precision medicine. The platform is already supporting a Phase III study by Asclepion Pharmaceuticals in the field of pediatric heart surgery, enabling the precise identification of subgroups of children who respond particularly well to the active ingredient L-citrulline.

NetraMark is now venturing into an exceptionally complex field: glioblastoma research. As recently filed in the Company’s Form 7, we note its collaboration with the renowned Mayo Clinic. Together, NetraMark is developing an AI-powered analysis and decision-making tool to enable novel therapeutic approaches against one of the most aggressive brain tumors. To date, over 90% of all studies in this field have failed, partly due to imprecise patient selection and a lack of reliable biomarkers.

Using so-called NetraPersonas, explainable patient subgroups are formed that provide detailed insights into disease progression and response to therapy. This is based on highly complex longitudinal data from cerebrospinal fluid, supplemented by state-of-the-art proteomics data from the SomaLogic platform. Among other things, tumor development in relapses, molecular effects of surgical interventions, and responses to chemotherapy and immunotherapy are analyzed.

Adobe – Fundamentally cheap

While investors are chasing the AI wave despite the sometimes exorbitant valuations, and stocks such as Nvidia and Palantir have multiplied their market value, Adobe is considered the disappointment in this sector par excellence. Since the beginning of the year, the stock of the developer of creative, design, and marketing applications, including well-known programs such as Photoshop, Illustrator, Premiere Pro, and Acrobat, has lost around 20% of its value and is currently trading at USD 347.25. Should the price fall below the current annual low of USD 332.01, this is likely to trigger a further sell-off towards the USD 275 mark, the low from 2022.

However, the valuation argues against a further sell-off and higher price potential, especially after the recently published figures, which included a jump in both sales and earnings. Adobe shares are currently trading at a significant discount. At 17.5, the price-to-earnings ratio is not only around 25% below the industry average of 24.0, but also 45% below its own 5-year average. The same picture is reflected in the price-to-cash-flow ratio. The US company currently stands at 15.6, compared to 18.4 for the industry and 28.2 for the Company's historical average.

At the same time, however, they also demonstrate Adobe's high cash conversion quality. Thanks to strong cash inflows, the Company can regularly carry out share buybacks worth billions. In the last quarter alone, 8 million shares totaling over USD 2.5 billion were repurchased, a clear sign of financial strength and confidence in the Company's own valuation.

The AI wave continues to be ridden by investors. The former industry laggard, Adobe, is massively undervalued compared to its peer group. The partnership with OpenAI is giving AMD shares a boost, while NetraMark has successfully secured a far-reaching cooperation agreement.