Advanced Micro Devices, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Cody Acree from Benchmark Co. reiterated a Buy rating on the stock and has a $270.00 price target.
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Cody Acree has given his Buy rating due to a combination of factors surrounding Advanced Micro Devices’ (AMD) strategic partnership with OpenAI. This collaboration involves deploying AMD’s AI infrastructure, which is expected to significantly enhance AMD’s competitive position in the industry. The agreement includes a warrant for OpenAI to acquire up to 160 million shares of AMD, aligning the financial incentives of both companies and potentially driving AMD’s share price higher.
Furthermore, AMD anticipates substantial revenue growth from this partnership, projecting over $100 billion in incremental revenue in the coming years. The deployment of AMD’s AI solutions is expected to begin generating significant revenue and earnings by the second half of 2026. With the first deployment scheduled for next year and the potential for additional agreements to further boost AMD’s stock, Acree has increased the price target to $270, reflecting a positive outlook on AMD’s future performance.
According to TipRanks, Acree is a 5-star analyst with an average return of 24.1% and a 68.33% success rate. Acree covers the Technology sector, focusing on stocks such as Advanced Micro Devices, Intel, and Nvidia.
In another report released today, Barclays also maintained a Buy rating on the stock with a $300.00 price target.