AMD soars again after getting more than 20 price target hikes across Wall Street following its deal with OpenAI
Over the past 24 hours, Wall Street has been scrambling to revise its view on how high shares of Advanced Micro Devices can climb in the wake of its recently announced megadeal with OpenAI.
While the terms of the arrangement may raise some eyebrows, Wall Street is expecting that OpenAI’s big foray into AMD’s AI chips will serve as a validation point and magnet for other potential buyers.
“OpenAI is arguably the most disruptive of GenAI cloud computing customers, and its success is likely to act as a force multiplier for other cloud vendors and LLM providers to accelerate their capex, positive for multiple chip, memory, optical, networking, and foundry suppliers,” wrote Bank of America analyst Vivek Arya, who estimates the agreement could be worth over $100 billion over the next four to six years.
As of publishing, we’ve tallied up 22 cases where the sell side has hiked its price target on the chip designer since news of the deal broke:
Jefferies, to $300 from $170 (also upgraded the stock to “buy” and had raised its price target just last week!)
Melius, to $300 from $200
Barclays, to $300 from $200
Wells Fargo, to $275 from $185
Argus Research, to $275 from $200
Cantor Fitzgerald, to $275 from $200
Truist, to $273 from $213
Benchmark, to $270 from $210
New Street Research, to $265 from $230
Bank of America, to $250 from $200
Roth Capital, to $250 from $200
Morgan Stanley, to $246 from $168
Baird, to $240 from $175
President Capital Management, to $240 from $186
Evercore ISI, to $240 from $188
Stifel, to $240 from $190
Piper Sandler, to $240 from $190
Citi, to $215 from $180
Goldman Sachs, to $210 from $150
Morningstar, to $210 from $155
Bernstein, to $200 from $140
Deutsche Bank, to $200 from $150
Bloomberg has average price target data going back to September 2005. Over the past two decades and change, there have been only 12 instances where the two-day average price target rose more than the 16% upward revision since the OpenAI pact was announcement.
Jefferies, to $300 from $170 (also upgraded the stock to “buy” and had raised its price target just last week!)
Melius, to $300 from $200
Barclays, to $300 from $200
Wells Fargo, to $275 from $185
Argus Research, to $275 from $200
Cantor Fitzgerald, to $275 from $200
Truist, to $273 from $213
Benchmark, to $270 from $210
New Street Research, to $265 from $230
Bank of America, to $250 from $200
Roth Capital, to $250 from $200
Morgan Stanley, to $246 from $168
Baird, to $240 from $175
President Capital Management, to $240 from $186
Evercore ISI, to $240 from $188
Stifel, to $240 from $190
Piper Sandler, to $240 from $190
Citi, to $215 from $180
Goldman Sachs, to $210 from $150
Morningstar, to $210 from $155
Bernstein, to $200 from $140
Deutsche Bank, to $200 from $150
Bloomberg has average price target data going back to September 2005. Over the past two decades and change, there have been only 12 instances where the two-day average price target rose more than the 16% upward revision since the OpenAI pact was announcement.
