TLDR
- AMD hit all time high of $262.42 on Monday October 27, up 90% year-to-date after three major October announcements
- OpenAI deal worth potential $100B includes 6GW of GPUs and warrants for 10% AMD stake
- Oracle ordered 50,000 MI450 chips while IBM quantum breakthrough validated AMD technology
- Analysts raised targets to $300-$310 with 29 Buy ratings as AI competition intensifies
- Forward P/E of 40x leaves little margin for error against NVIDIA’s 90% market share
AMD stock hits all time high of $262.42 on Monday, October 27, 2025. The chipmaker holds near its all-time high after a 90% year-to-date surge.
Advanced Micro Devices, Inc., AMD
Three announcements in three weeks sparked the rally. Each deal reinforced AMD’s position in the AI chip market.
The stock remained flat Monday morning. It held Friday’s 6.5% gain that pushed shares to new records.
AMD’s market cap now stands around $370 billion. That ranks it among the world’s largest semiconductor companies.
The October rally started with OpenAI on the 6th. The ChatGPT maker agreed to buy roughly 6 gigawatts of AMD Instinct GPUs starting late 2026.
That equals hundreds of thousands of high-end chips. OpenAI also secured warrants to purchase up to 10% of AMD shares.
The warrant milestones reportedly include stock prices reaching $600. AMD projects the deal could generate over $100 billion in new revenue across four years.
Investors sent shares up 34% in one day. That single-session jump added about $80 billion to AMD’s market value.
Wall Street Targets $300
Bank of America raised its price target to $300 from $250. Analyst Vivek Arya cited positive developments at the 2025 OCP Global Summit.
HSBC made an even bigger move. The firm lifted its target from $200 to $310.
Jefferies and Wolfe Research both set $300 targets. Mizuho and Wells Fargo raised theirs to $275.
MarketBeat data shows at least 29 Buy or Strong Buy ratings on AMD. Only one Sell rating remains.
A few firms stay cautious. Goldman Sachs and Citi maintain Neutral stances with $210 targets.
One week after OpenAI, Oracle announced plans for 50,000 AMD MI450 GPUs. The order supports new AI supercluster installations rolling out through 2027.
The Oracle news gave AMD a 3% pre-market boost. It proved big cloud players see AMD as a viable alternative to NVIDIA.
On October 24, IBM researchers delivered another catalyst. They ran a quantum computing algorithm on standard AMD data-center chips.
The task previously required specialized quantum hardware. The breakthrough validated AMD’s technology in advanced computing applications.
Shares jumped 7-8% that day to fresh records. The IBM news capped a remarkable October run.
Competition Heats Up
AMD’s forward P/E ratio sits around 40 times expected 2026 earnings. That compares to NVIDIA’s 28-30 times and the S&P 500’s 20 times.
The valuation demands flawless execution. Any stumble in delivering promised growth could trigger a sharp correction.
NVIDIA still commands 90-94% of the AI GPU market. Intel is also re-entering the race with new chips due in 2026.
AMD is pitching an open-platform approach. The strategy combines Instinct GPUs, EPYC CPUs, and new Helios systems.
Meta Platforms is reportedly evaluating AMD’s chips for its data centers. Early adoption by OpenAI, Oracle, and potentially Meta validates the strategy.
AMD expects $8.7 billion in Q3 revenue when it reports November 4. That would mark 20% year-over-year growth.
Last quarter delivered record sales of $7.68 billion, up 32% year-over-year. Full-year 2025 revenue targets approximately $33 billion.
The OpenAI and Oracle partnerships don’t impact near-term results. Deliveries start in late 2026.
But they dramatically improve AMD’s long-term growth outlook. The deals also boost credibility in cutting-edge AI applications.
AMD’s gross margin stands at 59.1% with a low debt-to-equity ratio of 0.07. The balance sheet supports expansion plans as competition intensifies.
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