"All after AMD announced a long-term deal to become a key supplier to OpenAI's AI infrastructure program. "OpenAI plans to deploy 6 gigawatts worth of AMD Instinct graphics processing units, or GPUs, over the course of the partnership. The first 1 gigawatt deployment will begin in the second half of 2026, the companies said. For context, one nuclear reactor can typically generate one gigawatt of electricity, as reported by Barron's.""
""This is yet another validation sign that the AI Arms Race is heating up among Big Tech firms with AMD now joining the AI party as this 1996 Moment for the tech world accelerates. With a 10% stake in AMD this quickly brings Lisa Su and AMD right into the core of the AI chip spending cycle and is a huge vote of confidence from OpenAI and Altman,""
"Analysts Just Raised Their Price Target on AMD by $100 Even better, analysts at Barclays just raised their price target on AMD by $100 to $300. "The price target increase follows AMD's partnership deal with OpenAI, which Barclays describes as 'designed to be mutually beneficial to OpenAI and AMD, and more pointedly drive the stock higher,'" added Investing.com. Plus, according to analysts at Wedbush, the latest deal is a "major movement in AI revolution.""
AMD shares rose about 25% to $207.44 on heavy intraday volume after the company agreed to supply OpenAI with GPUs. OpenAI plans to deploy 6 gigawatts of AMD Instinct GPUs over the partnership, with the first 1 gigawatt deployment starting in the second half of 2026. AMD projected the partnership will generate billions in annual revenue and contribute to over $100 billion in total chip revenue in the coming years. Barclays raised its price target to $300, and other analysts characterized the deal as a major validation of AMD's role in the AI chip market.
Read at 24/7 Wall St.
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