AMD Stock Target Lifted to $270 by TD Cowen After Landmark OpenAI Deal

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the Hot AI Stocks to Keep on Your Radar. On October 10, TD Cowen reiterated the stock as “Buy” and raised its price target on the stock to $270 per share from $195.

The firm believes there may be more upside ahead from AMD’s partnership with OpenAI.

“Neutral into the print on AMD (Buy): This would be positive, but after the landmark deal with OpenAI sent shares up 64% on the week, and with its 11/11 analyst day coming, the beat/raise we expect is unlikely to be a major catalyst.”

A recent deal between the two will allow OpenAI to purchase billions of dollars’ worth of equipment to build out AI capabilities. In exchange, it may also take a 10% stake in AMD.

“While a formal partnership shouldn’t come as a total surprise given Sam Altman’s appearance at AMD’s AI event, and OpenAI’s insatiable demand for compute, the line of sight and magnitude was still shocking. Still obviously much to prove with the actual deployments, but we believe this should help assuage several investor concerns regarding AMD’s roadmap,” -Analyst Joshua Buchalter “Overall, we believe the partnership offers significant validation that AMD is meaningfully participating in the AI compute TAM along with NVIDIA.”

Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications.

While we acknowledge the potential of AMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Trending AI Stocks on Wall Street’s Radar and 10 AI Stocks In The Spotlight For Investors

Disclosure: None.