AMD(US:AMD) Ge Long Hui A P P·2025-10-09 02:52Core Viewpoint - AMD has announced a partnership with OpenAI, which will deploy 6GW of AMD GPUs starting in the second half of 2026 and acquire up to 10% equity in AMD. This collaboration is expected to generate $100 billion in revenue over the coming years and significantly boost AMD's financial outlook [1] Company Summary - AMD's management anticipates that the partnership with OpenAI will lead to substantial revenue growth, with projections indicating that the AI business in data centers could reach several billion dollars by 2027 [1] - The collaboration is estimated to contribute an additional $150 billion in sales and $1 per share in earnings for every GW of AI capacity deployed [1] - Following this announcement, AMD's revenue forecasts for 2026 and 2027 have been revised upwards from $40.5 billion and $48.5 billion to $50.5 billion and $78.5 billion, respectively [1] - Earnings per share estimates have also been adjusted from $4.81 and $6.25 to $4.87 and $8.23 for 2026 and 2027 [1] Industry Summary - The deal is expected to positively impact the semiconductor industry by enhancing demand and valuation across the sector [1] - Citigroup has maintained a "Neutral" rating on AMD while raising the target price from $180 to $215 [1]