Top Bank of America Securities analyst Vivek Arya kept a Buy rating on Advanced Micro Devices (AMD) with a $250 price target after hosting an investor call with CFO Jean Hu and VP Matthew Ramsay. The price target of $250 implies more than 7% upside from current levels. He said the call drew strong investor interest and gave more confidence in AMD’s AI plans, especially around its expanding partnership with OpenAI (PC:OPAIQ).
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Interestingly, Arya ranks No. 263 among more than 10,000 analysts on TipRanks. He has a success rate of 61%, with an average return per rating of 17.20% over a one-year period.
OpenAI Deal Adds to Growth Outlook
Arya said OpenAI’s first 1-gigawatt AI deployment is on track to ship in the second half of 2026, mainly in Q4, using AMD’s MI450 Series racks. AMD will supply GPUs, CPUs, and DPUs, with total content valued at about $15–20 billion per gigawatt, including a small warrant impact of under 5%.
He added that the deal could expand as prices rise and networking components are added. AMD will deliver directly to cloud service providers, which could open doors for more AMD-based projects. Arya also noted that OpenAI is motivated to complete all six gigawatts before October 2030, when its warrants expire, calling this a new growth driver beyond AMD’s current AI plans.
Arya further highlighted UALink, AMD’s new interconnect technology that builds on its proven Infinity Fabric, as a key step in improving AI systems and keeping AMD competitive in the rapidly growing AI market.
What’s Next for AMD Stock?
AMD is expected to report its third-quarter 2025 results next month. Wall Street analysts expect the company to post revenues of $8.73 billion, up 28% from the year-ago quarter, according to data from the TipRanks Forecast page. Also, earnings are expected to increase by about 27% from the year-ago quarter to $1.17 per share.
During the upcoming Q3 earnings call, investors will watch for updates on AMD’s data center demand and progress in key AI partnerships like OpenAI, which could influence the company’s outlook in the quarters ahead.
Is AMD Stock a Buy, Sell, or Hold?
Currently, Wall Street has a Moderate Buy consensus rating on Advanced Micro Devices stock based on 27 Buys and 10 Holds. The average AMD stock price target of $237.59 indicates about 2.02% upside potential.
