Robert W. Baird analyst Tristan Gerra has maintained their bullish stance on AMD stock, giving a Buy rating yesterday.
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Tristan Gerra has given his Buy rating due to a combination of factors that highlight Advanced Micro Devices’ (AMD) promising future prospects. The partnership with OpenAI serves as a strong endorsement of AMD’s Mi450 GPU, which is expected to be highly competitive in the AI market. This collaboration is anticipated to significantly boost AMD’s market share in AI GPUs by 2027, as multiple hyperscalers are considering or have already committed to using the Mi450.
Moreover, AMD’s agreement with OpenAI involves a substantial 6 gigawatt deployment to power OpenAI’s AI infrastructure, which is projected to be immediately beneficial to AMD’s earnings. This partnership is expected to generate significant revenue, potentially exceeding $100 billion in the coming years. Additionally, the issuance of a warrant for up to 160 million AMD shares to OpenAI, contingent on achieving specific milestones, further underscores the strategic importance of this collaboration. These factors collectively support Gerra’s optimistic Buy rating for AMD.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $250.00 price target.
Based on the recent corporate insider activity of 60 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.