AMD Partners with OpenAI, Goldman Keeps Neutral Rating

Core Insights - Advanced Micro Devices, Inc. (NASDAQ:AMD) has formed a strategic partnership with OpenAI, which includes the deployment of 6 gigawatts of AMD GPUs over the coming years [1][2] - Goldman Sachs has maintained a price target of $210 and a Neutral rating for AMD, viewing the partnership as a substantial positive for the company [1][3] - The deal with OpenAI includes performance-based warrants allowing OpenAI to acquire up to 160 million shares of AMD, representing approximately 10% of the company [2] Financial Implications - AMD is expected to benefit from increased revenue and non-GAAP EPS as a result of the partnership with OpenAI [2] - Despite the positive outlook, Goldman Sachs has cited potential funding risks and high customer concentration in AMD's GPU datacenter business as concerns [3] Market Position - AMD operates in high-growth industries such as gaming, data centers, and AI, manufacturing GPUs, microprocessors, and high-performance computing solutions [3]