Piper Sandler and Jefferies Stay Bullish on Advanced Micro Devices, Inc. (AMD) After Meta Deal

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the 15 AI Stocks With Explosive Growth Potential.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the best AI stocks with explosive growth potential. On February 25, Piper Sandler reiterated its Overweight rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) with a $300 price target. This update comes after the company announced a major chip supply deal with Meta Platforms, Inc. (NASDAQ:META).

The company entered into a 6-gigawatt, multi-year engagement, with initial deployment expected to begin in the second half of 2026. Piper Sandler believes the deal could position Advanced Micro Devices, Inc. (NASDAQ:AMD) to generate about $100 billion in revenue over the next five years. The warrants tied to the deal are set to expire in February 2031, meaning the related revenue would be recognized before that date.

Piper Sandler added that it expects Wall Street analysts to raise their revenue and earnings per share estimates for Advanced Micro Devices, Inc. (NASDAQ:AMD) as the deal moves forward.

On February 24, Jefferies also reaffirmed its Buy rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) with a price target of $300. Jefferies said the deal with Meta Platforms, Inc. (NASDAQ:META) follows a structure similar to the company’s October 2025 agreement with OpenAI, where Advanced Micro Devices, Inc. (NASDAQ:AMD) agreed to exchange warrants for GPU revenue. The research firm pointed out that these deals come at a cost for the company. However, Jefferies noted that such deals are important for establishing a strong presence in the market and could help secure future business.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company that manufactures GPUs, microprocessors, and high-performance computing solutions and serves a number of high-growth industries like gaming, data centers, and AI.

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.

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