After AMD (AMD.US) announced a partnership with OpenAI, Jefferies released a research report deciding to upgrade AMD from Hold to Buy, and elevating its target price from US$170 to US$300, based on a 32x EPS for FY2027.
On Monday (6th), AMD announced an agreement to provide 6 GW of power for OpenAI's next-generation AI infrastructure using multiple generations of AMD GPUs, Jefferies noted.
This collaboration has the potential to generate over US$100 billion from OAI, new customers and existing clients over the next 4 years.
OpenAI has been making substantial expenditures, signing deals with Nvidia (NVDA.US), Oracle (ORCL.US) and Hynix (HXSCF.US)/Samsung, the broker added. Although these deals are non-binding, they highlight OpenAI's enormous demand for AI computing.
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AASTOCKS Financial News
Website: www.aastocks.com
| SG Top Picks |
| Stock & Type |
Code |
Strike(Call Level) |
Last |
Effective Gearing |
| AMD (C) |
10760 |
225 (-) |
0.820 |
2.9 X |
| AMD (P) |
10777 |
155 (-) |
0.193 |
2.7 X |
| Nvidia (C) |
10055 |
230 (-) |
0.249 |
4.8 X |
| Nvidia (C) |
10721 |
175 (-) |
0.455 |
4.7 X |
| Nvidia (P) |
10057 |
165 (-) |
0.220 |
3.5 X |
| Nvidia (P) |
10714 |
125 (-) |
0.030 |
6.2 X |
