AMD’s Lisa Su Visits TSMC, AI Supply Chain Partners as Company Locks In Capacity 3–5 Years Ahead · EMSNow

Advanced Micro Devices (AMD) granted OpenAI and Meta warrants for up to 160 million shares each, exercisable at $0.01 per share. Shares vest upon hardware purchases, with a final tranche for OpenAI requiring a $600 share price. AMD's stock traded at $655.90 on October 6, up 198.69% over 12 months. The warrants could dilute shares but are tied to significant processor orders.

Citi raised its price target for AMD to $800 from $575, citing potential demand from agentic AI. The bank's analyst expects the CPU market to reach $300 billion by 2030. AMD's Q2 data-center revenue rose 107% YoY to $6.7 billion, with total revenue up 50% to $11.5 billion. The company forecasts Q3 revenue of about $13 billion. Investors should monitor data-center growth and AI adoption.

AMD (AMD) shares rose 3.6% after CEO Lisa Su announced plans to increase manufacturing capacity due to high demand for AI processors and CPUs. The company aims to secure more capacity from Taiwanese partners, including TSMC. Shares later cooled to $649.82, up 2.9% from the previous close. AMD's stock has seen significant volatility, up 191% year-to-date and at a 52-week high.

Wells Fargo raised its price target for Meta Platforms (META) to $1,000, citing momentum from its Muse AI assistant. The new target implies 35% upside from Monday's close. Shares rose 0.2% to $743.01 on Tuesday. Analyst Ken Gawrelski expects 2027 to be a low point for profitability due to AI infrastructure investments, with earnings per share projected at $31-$32, below consensus estimates.

Citi raised its price target for AMD to $800, citing a forecast of a $300 billion CPU market by 2030. AMD's server CPU business is seen as a key beneficiary, with demand outpacing supply. CEO Lisa Su noted higher demand than supply, and analysts expect normalized EPS to double by 2027. The stock trades at 57 times forward earnings.

Citi raised its price target for AMD to $800, citing AI-driven demand for chips. AMD shares rose 4% to $656, nearing a record high. Analysts expect the CPU market to grow to $300B by 2030, benefiting AMD. The company plans to increase supply capacity in 2024. Most analysts recommend buying AMD stock.