Since Evercore Said the OpenAI Deal Made AMD a 'Buy,' It's Up More Than 140%. Here's Where We See It Going - 24/7 Wall St.
By Google News AI ·
Evercore stepped in the day after a headline pop and built its case around a single OpenAI deal, and the stock rewarded that conviction in a very specific way. But with AMD now trading at a stretched multiple and a…
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On Oct. 7, 2025, the OpenAI news was a day old and the stock had already rose. Evercore ISI stayed with the stock anyway. It raised its price target on AMD (NASDAQ:AMD | AMD Price Prediction) to $240 from $188 and kept its Outperform rating. Buying the day after a headline pop has burned plenty of investors.
This time it paid off: From the Oct. 6, 2025 close of $203.71, AMD is up 147.4%. SPY (NYSEARCA:SPY) gained 12.5% over that period.
The stock also sits more than 24% below its one-year high of $658.52. Friday’s session cut 11.04% from the stock after chip stocks sold off on Intel (NASDAQ:INTC) earnings and a weak PC forecast (Intel’s report on Oct. 30, 2026). Evercore’s call has been settled. The live question is where AMD goes from here.
Evercore built its case on AMD’s five-year deal with OpenAI and on what the deal said about AMD’s technology and roadmap. OpenAI agreed to install 6GW of AMD Instinct GPUs over five years. That gave AMD clear sight of large-scale deployments. Evercore estimated the deal could add over $2 to AMD’s 2027 EPS and over $4 to its 2028 EPS.
Several firms took the same side that day. UBS raised its target to $265 with a Buy. It noted the deal is at least partly funded by AMD stock warrants tied to installation and performance milestones and said the AI trade “still has legs.” Wells Fargo went to $275 at Overweight and lifted its 2027 revenue estimate to $62.98 billion from $43.75…
Originally published by Google News AI
