Analysts are optimistic that AMD has received huge orders from OpenAI and Oracle, marking a change in the rules of the game, and AMD's profit margins will grow significantly; AMD's stock price rose by more than 9% on the 15th, continuing its...
Analysts are optimistic that AMD has received huge orders from OpenAI and Oracle, marking a change in the rules of the game, and AMD's profit margins will grow significantly; AMD's stock price rose by more than 9% on the 15th, continuing its recent gains.
MarketWatch reported that HSBC analyst Frank Lee raised AMD’s target price from US$180 to US$310, believing that the cooperation with OpenAI is a game changer and is expected to bring revenue growth that far exceeds market expectations. He is optimistic that AMD’s artificial intelligence graphics processor (AI GPU) sales are expected to increase more than tenfold from this year’s estimated US$7.3 billion.
Frank Lee believes that AMD’s revenue potential visibility is now clearer and is still underestimated by Wall Street. He estimates that AMD's AI GPU revenue is expected to reach US$37.5 billion in 2027, much higher than the average market forecast of US$26.8 billion. He also believes that the performance gap between AMD products and NVIDIA (Nvidia) is gradually narrowing.
OpenAI announced on the 6th that it has concluded a cooperation agreement with a scale of tens of billions of dollars with AMD. It plans to deploy 6GW AMD GPUs in the next few years as the core chips of OpenAI infrastructure, and may gradually acquire 10% of AMD equity.
Oracle Cloud Infrastructure (OCI), Oracle's cloud infrastructure business, announced that it will initially deploy 50,000 AMD MI450 chips starting in the second half of 2026.
Wedbush analyst Matt Bryson is also optimistic that the recent huge deals have increased the revenue visibility of AMD GPUs. Deployment of AMD products equivalent to approximately US$20 billion per GW of chips will drive substantial revenue growth.
Bryson believes that with AMD’s massive delivery to OpenAI in 2027, AI-related revenue will approach US$20 billion in that year. He forecasts AMD's earnings per share in 2027 will reach $9, and raised AMD's target price from $190 to $270.
AMD’s stock price surged 9.40% on the 15th, closing at US$238.60. It has soared by more than 30% since the announcement of its alliance with OpenAI.
