Is AMD’s (AMD) Expanding AI Partnerships Quietly Redefining Its Long‑Term Data Center Strategy?

• In recent days, Advanced Micro Devices announced the appointment of Emily Ellis as Corporate Vice President and Chief Accounting Officer, while partners such as 4D Path highlighted new AI oncology deployments using AMD EPYC CPUs on Oracle Cloud Infrastructure and OpenAI secured access to up to 6 gigawatts of AMD chips via a warrant-linked supply deal.
• Taken together with upcoming Ryzen and Helios launches, these developments underscore how AMD is deepening its role as a core AI infrastructure supplier across cloud, healthcare, and hyperscale customers.
• Against this backdrop, we’ll examine how the OpenAI chip-supply and warrant deal could reshape AMD’s multiyear AI data center investment narrative.

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Advanced Micro Devices Investment Narrative Recap

To own AMD today, you have to believe its AI data center push and broader high performance roadmap can justify premium expectations despite fast shifting sentiment. The OpenAI chip supply and warrant deal is arguably the key near term catalyst, while crowding in AI trade favorites and tightening financial conditions around data center build outs look like the biggest current risks. The latest governance and customer updates do not materially change that risk reward balance.

Among the recent announcements, the OpenAI agreement for up to 6 gigawatts of AMD compute and roughly 10 percent warrant coverage stands out as most relevant. It directly reinforces the AI infrastructure narrative behind Helios and Instinct, while also tying AMD’s fortunes more closely to a single, very visible customer at a time when questions about AI investment pacing and export rules are front of mind.

Yet while AI enthusiasm is high, investors should also be aware that export controls and hyperscaler in house chips could...

Read the full narrative on Advanced Micro Devices (it's free!)

Advanced Micro Devices’ narrative projects $46.2 billion revenue and $9.0 billion earnings by 2028. This requires 18.5% yearly revenue growth and an earnings increase of about $6.8 billion from $2.2 billion today.

Uncover how Advanced Micro Devices' forecasts yield a $283.57 fair value, a 43% upside to its current price.

Exploring Other Perspectives

Some of the lowest case analysts were assuming AMD’s revenue would grow about 14.8 percent annually to roughly US$44.8 billion, even before this OpenAI deal raised fresh questions about export risks and rising in house competition, so it is worth comparing their more cautious view with the consensus story.

Explore 118 other fair value estimates on Advanced Micro Devices - why the stock might be worth as much as 89% more than the current price!

Build Your Own Advanced Micro Devices Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Advanced Micro Devices research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Advanced Micro Devices research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Advanced Micro Devices' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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