AMD and OpenAI Join Forces: Massive AMD GPU Deal Could Redefine AI Computing
Recently, Advanced Micro Devices (AMD) announced a significant agreement with OpenAI that may result in the ChatGPT developer acquiring a 10% share in the chipmaker. Six gigawatts of AMD’s Instinct GPUs would also be deployed by OpenAI over a number of years as part of this agreement. Late next year is when the deployments are expected to begin.
HSBC Raises AMD Price Target to $310 Amid OpenAI Partnership Hype
AMD’s stock has surged because of the positive investor sentiment surrounding this alliance. While maintaining a “Buy” recommendation on the stock, HSBC analysts increased AMD’s price objective from $185 to a street-high $310. According to HSBC, the OpenAI deal has a big potential income of almost $80 billion, more than ten times the anticipated revenue from AMD’s AI GPUs in 2025. Naturally, AMD would be quite interested in this multibillion-dollar income opportunity, particularly if it wishes to challenge Nvidia’s dominant position in the industry.
AMD Surges 109% in 2025 Amid Explosive AI and Data Center Expansion
With its headquarters located in Santa Clara, California, AMD is still a significant participant in the semiconductor sector, specializing in graphics and high-performance computing. In key technology areas, including artificial intelligence, data centers, and gaming, the corporation has been growing its presence. The corporation is worth $410 billion on the market.
AMD’s stock has been rising due to robust tailwinds from its AI possibilities. The stock has increased by 65% over the last 52 weeks and is up 109% so far this year. In only the last month, it has gone up 57%. AMD’s stock peaked at $253.39 on October 24, a 52-week high.
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