In a report released today, Yik Ban Chong from Phillip Securities maintained a Buy rating on Advanced Micro Devices, with a price target of $255.00.
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Yik Ban Chong has given his Buy rating due to a combination of factors that highlight Advanced Micro Devices’ (AMD) strategic positioning and growth potential. A significant driver is the multi-year agreement between AMD and OpenAI, which involves deploying AMD’s Instinct GPUs to power OpenAI’s AI infrastructure. This collaboration is seen as a strong endorsement of AMD’s technology by a leading AI model developer, suggesting increased demand for AMD’s GPU infrastructure from major cloud service providers and other large-scale users.
Additionally, the financial outlook for AMD is promising, with expectations of a substantial increase in data center revenue driven by the deployment of AMD’s GPUs for OpenAI. The analyst has raised the revenue and profit forecasts for FY26, reflecting the anticipated contributions from this deal. Furthermore, a strategic warrant agreement with OpenAI could enhance AMD’s market position, potentially allowing OpenAI to acquire a significant stake in AMD. Despite some risks associated with OpenAI’s financials, the overall assessment points to a favorable growth trajectory for AMD, justifying the Buy rating.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $261.00 price target.
Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AMD in relation to earlier this year.