Where Will Advanced Micro Devices Stock Be in 2 Years?

Core Viewpoint - Advanced Micro Devices (AMD) is experiencing strong earnings growth driven by the demand for advanced chips in artificial intelligence (AI), with a significant stock price increase of 100% year-to-date after a major deal with OpenAI [1] Group 1: Financial Performance - AMD reported a 36% year-over-year increase in revenue during its third-quarter earnings call, primarily fueled by demand from AI data centers, servers, and PCs [2] - Wall Street analysts project AMD's earnings per share to grow to $9.62 by 2027, suggesting a potential stock price of $586 if the forward price-to-earnings multiple remains at 61, or $336 with a lower multiple of 35 [5] Group 2: Strategic Partnerships - The recent deal with OpenAI is a significant growth catalyst, involving AMD supplying 1 gigawatt of its new Instinct MI450 chips starting next year, with potential expansion to 6 gigawatts in the long term [3] - Other major tech companies, including Microsoft and Google, are increasingly utilizing AMD's chips, reinforcing AMD's competitive position in the market [3] Group 3: Market Position - AMD's current market capitalization stands at $379 billion, with a current stock price of $233.54 [4] - The stock has shown strong momentum, making it an attractive option for investors looking to capitalize on the growing demand for AI chips [6]