Jefferies raises AMD (AMD.US) target price to $300, optimistic about its prospects for cooperation with OpenAI.

In Monday's trading, the semiconductor company AMD (AMD.US) sparked a strong market response by reaching a large-scale infrastructure deal with OpenAI supported by Microsoft Corporation. Jefferies upgraded AMD from "Hold" to "Buy" and raised its target price from $170 to $300. The Jefferies analyst team led by Brian Curtis pointed out in an investor report that this collaboration is expected to bring AMD over $100 billion in revenue in the next four years, covering incremental business from OpenAI, new customers, and existing customers. Curtis emphasized that optimism about AMD's prospects has increased further after ending his trip to Asia. The upcoming Venice server CPU is expected to drive AMD's share in the server CPU market to grow by over 500 basis points annually. Although ODM manufacturers have not brought significant benefits in the pace of AI chip production, after OpenAI announced to become AMD's major customer, by 2030, it is expected to bring in $80 billion to $100 billion in revenue through the deployment of 6GW of computing power, which will greatly exceed market expectations. OpenAI is continuously expanding its AI computing power map and plans to purchase equipment from NVIDIA Corporation (NVDA.US), AMD, and Broadcom Inc. (AVGO.US) to support its computing power needs. With this positive momentum, AMD's stock price surged 23.7% at the close of Monday's trading and continued to rise by 1.98% in pre-market trading on Tuesday.