Piper Sandler Thoughts on AMD (AMD) Stock Following META Deal

Piper Sandler analyst Harsh Kumar reiterated an Overweight rating and $300.00 price target on AMD (NASDAQ: AMD).

The analyst commented: "This morning, AMD announced a 6 GW, multi-year engagement with Meta with initial deployment starting in 2H2026. The deal structure is very similar to the OpenAI deal with AMD providing up to 160 million warrants to Meta with a final strike price of $600 in lieu of this business. We note that in this case, AMD is providing a custom version of its MI450 chip with Helios rack to Meta. The chip is a variant to the standard chip and does not require significant changes or a new tape-out. We believe this deal positions AMD for roughly another hundred billion dollars of revenues over the next five years as warrants are set to expire in February 2031 (thus revenues will happen prior to that). We believe that as this deal comes to fruition, revenue, and EPS expectations across the street will rise for AMD."

For an analyst ratings summary and ratings history on AMD click here. For more ratings news on AMD click here.

Shares of AMD closed at $213.84 yesterday.

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