Jefferies Upgrades Advanced Micro Devices (NASDAQ:AMD) to "Positive"

Core Viewpoint - Jefferies upgraded Advanced Micro Devices (AMD) to a "Positive" rating due to a significant partnership with OpenAI, which is expected to enhance AMD's position in the semiconductor and AI markets [1][6]. Group 1: Partnership with OpenAI - AMD's collaboration with OpenAI involves utilizing AMD chips to power OpenAI's AI software, marking a strategic alliance that is expected to shape the future of computing [2][6]. - The partnership was publicly announced on 'The Claman Countdown,' highlighting AMD's increasing influence in the AI and semiconductor sectors [2]. Group 2: Stock Performance and Market Reaction - Following the announcement of the partnership, AMD's stock experienced a surge of 30% [3][6]. - AMD's stock was valued at $203.71 at the time of the upgrade, with a significant increase of 23.71%, reflecting a change of $39.04 [5][6]. Group 3: Future Growth Projections - Analysts have reiterated a Strong Buy rating for AMD, forecasting accelerated growth that could lead to a valuation of $1 trillion, driven by increased data center revenue and a compound annual growth rate (CAGR) of 25% [4][6]. - OpenAI plans to construct a 1-gigawatt data center using AMD's MI45 chips, with operations expected to commence in 2026, and the deal is valued at up to $300 billion [3].