AMD stock surged 24% after partnering with OpenAI, which includes a 10% stake in the company. OpenAI plans to deploy six gigawatts of AMD GPUs, starting with a 1-gigawatt rollout in 2026. The deal positions AMD as a core partner to OpenAI, with potential revenue in the tens of billions.

The partnership diversifies OpenAI’s supply chain and validates AMD’s AI accelerator roadmap. AMD recently reported $7.7 billion in second-quarter revenue, a 32% YoY increase. Despite inventory write-offs, the company expects double-digit growth in the third quarter, driven by record server CPU sales and new product launches.

AMD is strategically approaching the AI accelerator market with multi-generational plans. The company’s chiplet architecture provides a competitive edge in inference workloads. With over 40 active sovereign AI engagements globally, AMD is focused on expanding market share and maximizing gross margin dollars.

Analysts forecast AMD’s revenue to reach $68.5 billion by 2028, with adjusted earnings per share growing to $11.62. Out of 44 analysts, 28 recommend “Strong Buy.” The average price target is $194.64, with a high target of $300. AMD’s stock could surge 66% over the next 30 months, driven by AI market growth and strategic partnerships.

Read more at Yahoo Finance: AMD Stock Is Soaring on an OpenAI Deal, But Analysts Still Think It Can Climb 35% From Here