Advanced Micro Devices, Inc. (NASDAQ: AMD) received a price target raise to $310 from $185 by HSBC analyst Frank Lee, who reaffirmed a Buy rating. The firm expects massive AI revenue upside potential from AMD’s OpenAI deal, which will deploy six gigawatts of AMD GPUs starting in 2026.

The deployment of the first 1 gigawatt AMD Instinct MI450 GPUs is set to begin in the second half of 2026. Analysts predict a total revenue opportunity of around USD80bn for AMD from the OpenAI deal, significantly higher than its 2025 estimated AI GPU revenue of USD7.3bn.

Analysts have raised their 2026 estimates for AMD’s AI GPU revenue to $19.8B from $13.9B, anticipating a 0.5GW deployment for OpenAI in the second half of 2026. With increased CoWoS allocation, AMD is expected to continue expanding its revenue into 2027 as well.

Advanced Micro Devices, Inc. (NASDAQ: AMD) develops and sells semiconductors, processors, and GPUs for various applications, including data centers, gaming, AI, and embedded systems. While AMD shows investment potential, some AI stocks may offer better upside potential with lower downside risk.

Read more at Yahoo Finance: HSBC Lifts AMD Price Target to $310 on OpenAI Deal Visibility