AMD has signed a deal with OpenAI to supply AI gear for up to 6 gigawatts of AI infrastructure, potentially earning tens of billions in annual revenue starting in 2026. This deal validates AMD’s AI technology and could lead to over USD 100 billion in future revenue. Analysts raise fair value estimate to USD 210 and double AI revenue projections for 2027 and beyond.

OpenAI’s massive AI aspirations could drive significant deals with both Nvidia and AMD. No timeline set for rollout, but slow infrastructure buildout could impact future revenue. Investors may benefit if energy constraints slow down AI bubble growth. No stock ownership disclosed in this Morningstar Equity Research analysis.

Read more at Morningstar: The Company Has Arrived in AI With a Massive OpenAI Deal