Stifel raised the firm’s price target on AMD (AMD) to $240 from $190 and keeps a Buy rating on the shares after the company entered into a strategic agreement with OpenAI, issuing warrants for up to $160M shares by calendar year 2030, dependent on OpenAI and affiliates purchasing and AMD delivering six gigawatts of rack-scale compute in the same time-frame. The deal positions AMD as a co-design partner in OpenAI’s infrastructure roadmap, elevating AMD’s perceived positioning in AI compute and rack-scale systems, with management hinting that more such deals are in the works, the analyst tells investors in a research note. The firm added that it is backing into what it views as AMD’s implied expectations of a low- to mid-single-digit multiple of trailing-twelve-month revenue by CY30 relative.
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