Gold rally may be losing steam but no major correction seen: DB
Investing.com - TD Cowen has raised its price target on AMD (NASDAQ:AMD) to $270.00 from $195.00 while maintaining a Buy rating on the stock. The semiconductor giant, now valued at $370 billion, has seen its stock surge over 41% in the past week, according to InvestingPro data, which also indicates the stock is trading above its Fair Value.
The price target increase follows AMD’s recent deal with OpenAI, which sent the chipmaker’s shares up 64% in a single week, according to TD Cowen analyst commentary. The company maintains a "GREAT" financial health score, with liquid assets exceeding short-term obligations.
TD Cowen noted that while it expects AMD to report strong earnings and provide positive guidance, the results may not serve as a major catalyst for the stock given the recent surge following the OpenAI announcement.
The firm updated its model following the deal, indicating that under "somewhat conservative assumptions" AMD’s 2027 earnings could approach $10 per share.
TD Cowen also highlighted AMD’s upcoming analyst day scheduled for November 11 in New York City, which could provide additional information about the company’s growth strategy and outlook.
In other recent news, Advanced Micro Devices (AMD) has announced a significant multi-year partnership with OpenAI, which could potentially generate over $100 billion in AI revenue for AMD. This agreement involves AMD providing GPUs to support 6 gigawatts of data center capacity for OpenAI, with the initial 1 gigawatt deployment set to start in the latter half of 2026 using AMD’s MI450 and Helios rack systems. Following this announcement, several analyst firms have adjusted their price targets for AMD. Piper Sandler raised its price target to $240 from $190, maintaining an Overweight rating. Similarly, Bernstein increased its target to $200 from $140, while keeping a Market Perform rating. BofA Securities reiterated its Buy rating with a $250 price target, citing the progress of OpenAI’s first 1GW deployment. Meanwhile, Goldman Sachs maintained a Neutral rating with a $210 price target. These developments reflect AMD’s strategic positioning in the AI infrastructure market through its collaboration with OpenAI.
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