AMD price target raised to $240 from $190 at Piper Sandler

Piper Sandler analyst Harsh Kumar raised the firm’s price target on AMD (AMD) to $240 from $190 and keeps an Overweight rating on the shares. The firm notes AMD and OpenAI struck a significant deal, outlining a 6-gigawatt agreement to power OpenAI’s AI infrastructure with AMD’s Instinct GPUs. In exchange, OpenAI will receive 160M warrants for AMD stock as specific milestones are achieved over the next five years. Piper expects AMD to also start shipping Pensando’s UALink switches along with the MI500 chip in 2027. This agreement signals the potential for broad adoption of AMD’s Instinct accelerators across both OpenAI and its designated CSP partners. The firm believes this will likely lead to significant traction with other players down the line as well.