AMD price target raised to $300 from $200 at Barclays

Barclays analyst Tom O’Malley raised the firm’s price target on AMD (AMD) to $300 from $200 and keeps an Overweight rating on the shares. The company’s partnership with OpenAI is designed to be mutually beneficial, “and more pointedly drive the stock higher,” the analyst tells investors in a research note. The firm says the unique part of the deal is the addition of the warrants issued at one GW intervals along with stock thresholds, with the final tranche requiring AMD stock at $600 for issuance. Barclays says the pact adds $4.5B per quarter to the $3B it was expecting exiting 2026 for AMD. Assuming the six GWs get deployed on a linear basis through when the warrants expire near the end of 2030, the earnings per share impact is $1.30 per quarter, which equates to a $3 per quarter run rate for total company earnings, Barclays estimates. AMD shares will not give today’s back with the realization that more of these types of deals are likely to come, the firm says.