RBC Capital Initiates AMD at Sector Perform

RBC Capital analyst Srini Pajjuri initiated coverage of 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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