BofA raised the firm’s price target on AMD (AMD) to $250 from $200 and keeps a Buy rating on the shares after the company signed a multi-year, multi-generational deal to supply 6 GW of computing capacity to OpenAI starting in late 2026. The firm estimates that the deal could be worth $100B-plus based on every 1 GW requiring roughly 400-500,000 AMD MI450X GPUs, adding that average selling prices could be higher as part of AMD’s Helios rack-scale implementation and depending on networking content. The firm also believes this OpenAI deal is incremental to other Middle East sovereign deals AMD signed earlier this year, the analyst noted.
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