Piper Sandler Raises Price Target on AMD (AMD) to $240 After Landmark OpenAI Deal

Group 1 - Advanced Micro Devices, Inc. (AMD) has had its price target raised to $240 from $190 by Piper Sandler analyst Harsh Kumar, maintaining an Overweight rating on the stock [1] - The price target increase follows a significant agreement between AMD and OpenAI, which includes a 6-gigawatt deal to power OpenAI's AI infrastructure with AMD's Instinct GPUs [1][3] - OpenAI will receive 160 million warrants for AMD stock as specific milestones are achieved over the next five years, with AMD expected to begin shipping Pensando's UALink switches along with the MI500 chip in 2027 [2][3] Group 2 - The initial agreement encompasses a wide range of products, including GPUs, CPUs, DPUs, and licensing revenue from the Helios rack, with AMD projecting that each gigawatt deployed could generate high double-digit billions in annual revenue [3] - The agreement indicates the potential for widespread adoption of AMD's Instinct accelerators across OpenAI and its designated cloud service provider partners, which may lead to significant traction with other industry players in the future [3]