AMD Partners with OpenAI, Goldman Keeps Neutral Rating

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the 11 Best American Semiconductor Stocks to Invest In. On October 7, Goldman Sachs kept its price target of $210 and Neutral rating on Advanced Micro Devices, Inc. (NASDAQ:AMD).

This decision came after Advanced Micro Devices, Inc. (NASDAQ:AMD) announced a strategic partnership with OpenAI, which involves OpenAI deploying 6 gigawatts of AMD GPUs over the coming years.AMD Partners with OpenAI, Goldman Keeps Neutral Rating

The deal includes performance-based warrants, which will allow OpenAI to own up to 160 million shares of Advanced Micro Devices, Inc. (NASDAQ:AMD), roughly 10% of the company.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is expected to benefit from this partnership and grow its revenue and non-GAAP EPS.

Goldman Sachs sees the announcement as “a substantial positive for AMD.” However, the firm maintained its Neutral rating and cited “potential funding risks tied to the business and likely high customer concentration for AMD’s GPU datacenter business.”

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company that manufactures graphics processing units (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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Disclosure: None. This article is originally published at Insider Monkey.

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