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Investing.com -- Bank of America told investors in a note Friday that its investor call with AMD’s Chief Financial Officer Jean Hu and Vice President of Financial Strategy and Investor Relations Matthew Ramsay “suggests strong AI ramp visibility.”
The bank maintained a Buy rating with a $250 price target on the stock.
According to BofA, the call indicated that “OpenAI’s first 1GW deployment is on track to ship in 2H26 on MI450 Series racks, weighted towards Q4.”
AMD’s content “will initially include its GPUs, CPUs, DPUs for ~$15–20bn per GW, including contra-revenue warrant impact (<5%),” with the potential to “increase over time on ASPs expansion and potential inclusion of networking components.”
BofA said AMD confirmed that OpenAI is financially incentivized to deploy all 6 GW prior to October 2030, when warrants expire.
The deal, which AMD will ship to and bill CSPs for, is “incremental to what AMD has announced so far,” wrote BofA, adding that it could “open doors for other AMD-based deployments at CSPs.”
The note added that AMD’s data center GPU products remain slightly below corporate GM average as the company prioritizes market share expansion in the initial phase of AI infra deployment.
However, AMD’s broader data center portfolio is said to remain “significantly GM accretive,” and the GPU ramp is expected to be “OpM accretive toward the company’s long-term mid-30% target (vs. mid-20% range today).”
BofA said AMD’s collaboration with OpenAI could expand as UALink aims to build on what AMD has been doing with null Fabric over 5–6 generations, describing it as “a proven concept.”