Sanmina price target raised to $150 from $130 at BofA

BofA raised the firm’s price target on Sanmina (SANM) to $150 from $130 and keeps a Neutral rating on the shares after OpenAI and AMD (AMD) announced a multi-billion dollar partnership to collaborate on AI datacenters. The announcement is overall positive for Sanmina as AMD’s “preferred” NPI partner who will help AMD build, test and make their GPU racks production ready, the analyst tells investors. However, the exact impact to Sanmina is difficult to ascertain, since it depends on whether OpenAI buys just GPU’s directly from AMD and integrates them into racks, how many racks Sanmina gets to build, and the fact that customers have the option of choosing some other company to do NPI testing and to be their manufacturing partner, the analyst added.