AMD price target raised to $250 from $200 at Roth Capital

Roth Capital analyst Suji Desilva raised the firm’s price target on AMD (AMD) to $250 from $200 and keeps a Buy rating on the shares after the company announced a new multi-year 6GW AI processor supply agreement with OpenAI. After AMD signing this “flagship customer” as a credible source of large-scale AI infrastructure across from its primary competitor, the firm says it is “encouraged” that OpenAI will make use of newer AMD rack-based solutions, target both inference and training workloads using AMD, and will potentially build an equity stake via milestone-based warrant tranches.