Advanced Micro Devices, Inc. (NASDAQ:AMD) is gaining traction among investors as a prominent AI stock. On October 6, Barclays boosted its price target for AMD from $200 to $300, maintaining an Overweight rating. This upgrade follows AMD’s strategic partnership with OpenAI, projected to elevate AMD’s stock and profitability. The partnership includes a structured warrant agreement linked to AMD’s stock performance, potentially generating an additional $4.5 billion in quarterly revenue by late 2026, surpassing previous estimates of $3 billion. This growth could enhance AMD’s earnings by $1.30 per share quarterly. By the second half of 2026, the deployment of new capacity may contribute an estimated $15 billion in revenue by 2027, driven by sustained growth through 2030. Despite AMD’s potential, some analysts suggest that other AI stocks might present more attractive opportunities. For insights on undervalued AI stocks, check our report on promising short-term investments.
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