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Benzinga
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AMD's $100 Billion OpenAI Deal Could Supercharge AI Chip Growth, Analyst Says, Projecting Massive Earnings Boost By 2030

1. AMD partners with OpenAI for $100 billion revenue over four years. 2. AMD to supply 6 GW of computing capacity starting late 2026. 3. Bank of America increased AMD's price target from $200 to $250. 4. Projected EPS increase driven by each gigawatt of capacity. 5. AMD faces competition from Nvidia and Broadcom in AI infrastructure.

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FAQ

Why Very Bullish?

The partnership with OpenAI significantly enhances AMD's revenue potential, matching positive historical trends where partnerships related to AI have driven stock prices up, similar to Nvidia's rise following its AI deals.

How important is it?

The article discusses a transformative partnership delivering substantial future revenue, making it highly significant to AMD's market outlook.

Why Long Term?

The benefits from this deal will unfold over several years as the AI infrastructure builds out, similar to previous tech cycles that saw gradual adoption and revenue growth.

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