AMD’s gains follow OpenAI deal and AI revenue growth

AI · First reported 4 Nov, 13:03 · Updated 14:13

Image: Wikimedia Commons · NASA Johnson Space Center · Public domain

Evercore raised its AMD price target to $240 after the company announced a five-year OpenAI agreement for up to 6GW of Instinct GPUs. AMD later gained 147.4% from its Oct. 6, 2025 close, but the article says valuation is a key risk and places its base-case target about 4% above the current price.

OpenAI agreed to install 6GW of AMD Instinct GPUs over five years; Evercore estimated the deal could add more than $2 to AMD’s 2027 EPS and more than $4 to its 2028 EPS.
AMD rose 147.4% from its Oct. 6, 2025 close of $203.71, while the article reports that a later session saw the stock fall 11.04% following Intel earnings and a weak PC forecast.
The article gives a one-year base-case target of $523.67, about 4% above the cited current price, and identifies valuation and delays to the Helios ramp as risks.

Summary written by Lux AI from 2 articles

Key facts

OpenAI agreement: Up to 6GW of AMD Instinct GPUs over five years.
Evercore target: $240, raised from $188 on Oct. 7, 2025.
AMD return: 147.4% from the Oct. 6, 2025 close of $203.71, as reported in the article.
Base-case target: $523.67, approximately 4% above the cited current price.
Wall Street average target: $640.21.