AMD Stock Surges on OpenAI Partnership, Analysts Divided on Future
Advanced Micro Devices (AMD) shares rallied this week following a strategic partnership with OpenAI. The deal involves OpenAI deploying 6 gigawatts of AMD GPUs over several years, while taking a 10% equity stake in the chipmaker—equivalent to 160 million shares. The announcement has reignited bullish sentiment around AMD, which has already gained 96% year-to-date on AI-driven demand.
Analysts are split on the stock's trajectory. AZ and Rosenblatt maintain $250 price targets, citing revenue and EPS upside from the OpenAI collaboration. Goldman Sachs acknowledges the deal as a "substantial positive" but retains a Neutral rating, flagging potential funding risks and customer concentration in AMD's data center business. The firm sees a pullback to $150 as likely, with shares currently trading NEAR 52-week highs at $235.
