How is AMD performing in the AI GPU market?

AMD is gaining traction with its MI3xx platform, with AI GPU revenue projected to climb 30% in 2025 and its server market share holding strong.

What is the significance of the OpenAI deal for AMD?

A 6GW agreement with OpenAI could represent over $100 billion in revenue for AMD through 2030, positioning it as a major supplier.

What is the analyst outlook for AMD stock?

Analyst Srini Pajjuri initiated coverage with a Neutral rating and $230 price target, while the overall analyst consensus is a Strong Buy.

Home / Business and Economy / AMD's AI GPU Surge: $100B OpenAI Deal Looms

AMD's AI GPU Surge: $100B OpenAI Deal Looms

21 Jan

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Summary

AMD's AI GPU revenue is projected to climb 30% in 2025.
A 6GW agreement with OpenAI could yield over $100 billion.
Analyst initiates coverage with a Neutral rating and $230 target.

AMD's AI GPU Surge: $100B OpenAI Deal Looms

Advanced Micro Devices (AMD) is increasingly competitive in the AI GPU sector, with its MI3xx platform seeing broader adoption by U.S. hyperscalers.

The company's AI GPU revenue is forecasted to increase by approximately 30% in 2025, driven by expanded usage from major clients like Meta, Microsoft, and xAI.

Analyst Srini Pajjuri anticipates AMD's GPU revenue will double in 2026, with a key inflection point expected in Q4 as OpenAI begins utilizing MI450-based systems.

Pajjuri highlights AMD's solid roadmaps for GPUs and systems, alongside maturing software and an extensive customer base, suggesting a potential long-term market share of 10-20%.