Goldman Sachs Reiterates Neutral Rating on AMD (AMD)

Goldman Sachs analyst James Schneider reiterated a Neutral rating and $210.00 price target on AMD (NASDAQ: AMD).

The analyst comments "On October 6th before the market open, AMD and OpenAI announced a strategic partnership (here) to deploy 6GW of AMD GPUs in the coming years. The partnership also includes performance-based warrants for up to 160mn shares of AMD common stock (~10% ownership), which would vest in tranches as deployments are completed, with a system of increasing stock price thresholds (final tranche vests with 6th GW deployment and AMD share price of $600). AMD expects the partnership to be immediately highly accretive to AMD's revenue growth and non-GAAP EPS. We view this announcement as a substantial positive for AMD, and we significantly raise our estimates and price target within. We remain Neutral on the stock given the potential funding risks tied to the business and likely high customer concentration for AMD's GPU datacenter business. However, we could be more constructive if we gain incremental confidence on the revenue stream and execution timeline for this deal in the coming quarters."

For an analyst ratings summary and ratings history on AMD click here. For more ratings news on AMD click here.

Shares of AMD closed at $203.71 yesterday.

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