Core Insights - Advanced Micro Devices (AMD) announced a partnership with OpenAI, which includes the deployment of up to 6 gigawatts of AMD Instinct GPUs and the option for OpenAI to purchase up to 160 million AMD shares at $0.01 each, representing approximately 10% of the company [1] - This partnership is expected to generate billions in new revenue, significantly boosting AMD's market capitalization to over $300 billion and increasing its stock price by 27.05% to $209.21 [1] - Despite the positive news, forecasts indicate a potential decline in AMD's stock price, with predictions suggesting it could drop to $174.12 by the end of October, representing an 18% downside from current levels [3][5] Company Developments - The partnership with OpenAI comes at a time when demand for artificial intelligence infrastructure is surging, but both AMD and OpenAI will face significant costs and scrutiny to meet aggressive timelines while competing with Nvidia [2] - Analysts have mixed views on AMD's future stock performance; while some machine learning models predict a bearish trend, Barclays has upgraded its price target for AMD shares from $200 to $300 [6]
Machine learning algorithm predicts AMD stock price on October 31, 2025