AMD(US:AMD) Ge Long Hui·2025-10-08 14:02Core Viewpoint - AMD has received a significant investment from OpenAI, acquiring up to 10% stake, which will lead to a long-term collaboration on AI chips and a planned deployment of 6GW of AI computing capacity over the next few years, with an investment exceeding $100 billion [1] Group 1: Investment and Collaboration - AMD's stock rose over 5.3% to $222.75 following the announcement of OpenAI's investment [1] - The first phase of the collaboration will involve a 1GW deployment plan set to begin in the second half of next year, utilizing AMD Instinct MI450 GPUs [1] - Morgan Stanley anticipates that the partnership will enhance AMD's ecosystem, describing the collaboration as potentially transformative [1] Group 2: Financial Projections - Bank of America estimates that the deal with OpenAI could increase AMD's annualized earnings per share by 9% to 35% by the end of 2026 and 2027 [1] - By 2030, with the full deployment of 6GW and an EBIT margin of 35%, AMD's earnings per share could exceed $15 [1] - Bank of America has upgraded its price target for AMD from $200 to $250, maintaining a "Buy" rating [1] Group 3: Analyst Ratings - Morgan Stanley has raised its price target for AMD from $168 to $246 while maintaining a "Market Perform" rating [1]