AMD price target raised to $300 from $200 at Melius Research

Melius Research analyst Ben Reitzes raised the firm’s price target on AMD (AMD) to $300 from $200 and keeps a Buy rating on the shares. The firm notes that it thought a big OpenAI deal was coming at some point for AMD, but Melius believes “this is about 5x better” than it thought it would be. A successful mass deployment with OpenAI would likely cause more hyperscale customers to kick the AMD AI tires and trust its ROCm software ecosystem, the firm argues. While there should be ratable dilution from the reflection of 160M in incremental shares from the second half of 2026 through 2030, the financial benefits to AMD are very accretive as Melius estimates that GW amounts to $17B-$20B in AI revenue, driving up to $9B in incremental operating income. “Hats off to AMD,” the firm says, adding that even factoring in dilution, it raises its 2027 EPS estimate by 35% to $10.00, including AI revenue now of $27B.