09:45 AM EDT, 10/06/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target to $250 from $200 on a higher P/E of 32.8x our 2027 EPS view, above peers and near historical, after AMD announced a partnership with OpenAI. The deal involves OpenAI deploying 6GW of AMD's Instinct GPUs over multiple years, starting with 1GW in 2H 2026. AMD is also issuing OpenAI a warrant for up to 160M shares of AMD, which will vest as specific deployment and share price milestones are achieved (the deal assumes about a 10% stake when fully vested). Although we leave our above-consensus EPS estimates unchanged, we see considerable upside led by GPU server revenue, especially in our out-year expectations (2027-2029). The announcement aligns with our earlier analysis, indicating that AMD is gaining significant momentum in ramping its full-scale rack solutions for 2026 while showing notable advancements in its ROCm software. Indeed, we still see other catalysts, including TAM expansion/Sovereign AI, increasing hyperscaler adoption of AMD's GPUs, and an eventual return into China.