RBC Capital Initiates AMD at Sector Perform, $230 Price Target

RBC Capital analyst Srini Pajjuri initiates coverage on AMD (NASDAQ: AMD) with a Sector Perform rating and a price target of $230.00.

“AMD is making solid progress in the AI GPU market across major hyperscalers.

Its recent OpenAI partnership should establish the company as a legitimate supplier for gigawatt scale projects.

Management appears to have high conviction in initial 1GW rollouts, which is reflected in our estimates. Helios, AMD’s first rack-scale design, looks impressive but comes with usual execution risks.

In addition, key customers META, MSFT, and OpenAI have in-house ASIC programs scheduled to ramp in 2026/27.

We see balanced risk/reward given premium valuation and limited near-term catalysts until OpenAI ramps start in late 2026. Initiate at Sector Perform.”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.