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<Research>BofAS: Partnership with OpenAI May Boost AMD (AMD.US) EPS to US$15+
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AMD (AMD.US) announced a long-term partnership with OpenAI, BofA Securities issued a research report saying. Starting from the end of 2026, AMD will gradually supply chips with a computing capacity of 6GW, while OpenAI will acquire up to a 10% stake in AMD, with the estimated scale of the collaboration exceeding US$100 billion. Calculating with each GW bringing incremental revenue of approx. US$17.5 billion and an EBIT margin of 30-35%, BofA Securities predicted that the deal will increase AMD's annualized EPS by 9-35% by the end of 2026/ 2027. By 2030, with the full deployment of 6GW and an EBIT margin of 35%, its EPS could rise to over US$15. Therefore, the broker kept rating at Buy on AMD, and raised its target price from US$200 to US$250. Furthermore, BofA Securities also kept ratings at Buy for Nvidia (NVDA.US) and Broadcom (AVGO.US), and listed them as AI beneficiaries. AASTOCKS Financial News Website: www.aastocks.com |
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