Advanced Micro Devices, Inc. (NASDAQ: AMD) is gaining analyst attention as an AI stock, particularly following HSBC analyst Frank Lee’s recent price target upgrade to $310 from $185, maintaining a “Buy” rating. The firm anticipates significant revenue growth from AMD’s partnership with OpenAI, which involves deploying six gigawatts of AMD GPUs over several years, starting with 1 gigawatt of AMD Instinct MI450 GPUs in late 2026. The expected revenue from this deal could reach approximately $80 billion, far exceeding AMD’s projected 2025 AI GPU revenue of $7.3 billion. Analysts have revised their 2026 AI GPU revenue forecast to $19.8 billion, up from $13.9 billion, reflecting an expected 0.5-gigawatt rollout. AMD is also increasing its CoWoS wafer allocation for 2026, indicating further growth potential. While AMD presents a solid investment opportunity, some analysts caution that other AI stocks might offer greater upside with reduced risk.
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