OpenAI to Deploy 6 Gigawatts of Advanced Micro Devices (AMD) GPUs

​Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the Hottest Mega-Cap Stocks of 2025. On October 6, Advanced Micro Devices, Inc. (NASDAQ:AMD) announced a strategic partnership with OpenAI to deploy 6 Gigawatts of AMD GPUs. These GPUs will power OpenAI’s next-generation AI Infrastructure.

​This is a multigeneration agreement with the first gigawatt deployment of AMD Instinct MI450 GPUs expected to begin in the second half of 2026. The stock has gained more than 7.5% in just a week since the announcement, and several Wall Street analysts have raised their price targets on Advanced Micro Devices, Inc. (NASDAQ:AMD).

​On October 10, Joshua Buchalter from TD Cowen raised the firm’s price target on the stock from $195 to $270, while reiterating a Buy rating. More recently, on October 13, Vijay Rakesh from Mizuho Securities also raised the price target on Advanced Micro Devices, Inc. (NASDAQ:AMD), while maintaining a Buy rating on the stock.

​Advanced Micro Devices, Inc. (NASDAQ:AMD) is an international semiconductor company that specializes in high-performance computing, graphics, and visualization technologies.

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: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.