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.”
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