Analysts at AZ bank have given a forecast upgrade to AMD stock, upping shares to a buy rating from a hold rating. The newly forecasted $250 target would mean an 18% upside from Tuesday’s closing stock price. The stock is up 6% on Wednesday and up over 48% in the last 30 days.

This week, AMD announced a multi-billion-dollar deal with OpenAI. The chipmaker will provide upward of 6 gigawatts of GPUs to the AI juggernaut over several generations, starting with its MI450 chips in the second half of 2026, per a Monday announcement. In return, OpenAI will take a stake in AMD worth up to 160 million shares, or roughly 10% of the company. The news drew in plenty of investor interest, catapulting shares higher. At press time, the firm’s 50-day moving average is $167.22 and its 200-day moving average is $135.02. Additionally, the company has a market capitalization of $343.25 billion, a PE ratio of 121.56, a PEG ratio of 2.40, and a beta of 1.90.

The deal will also give OpenAI the chance to purchase 160 million shares of Advanced Micro Devices Inc. at a penny each. These shares will vest over time as different milestones are reached — starting with that first one gigawatt deployment. Ultimately, these shares would give OpenAI up to a 10 percent stake in AMD. Additionally, the deal also creates a bit of a triangle, following in the heels of AMD-rival Nvidia’s $100B investment into OpenAI just a few weeks ago.

Also Read: AMD Stock Soars 40% as OpenAI Deal Shakes Nvidia’s Dominance

Furthermore, a number of other equities analysts have also recently commented on AMD stock. Analysts believe that AMD’s deal with OpenAI validates its AI GPU technology, likely accelerating adoption among cloud service providers. While Rosenblatt is similarly optimistic as AZ with a $250 target, Stifel’s $190 target is more conservative. Stifel excels in price target accuracy with a 97.1 score, suggesting strong historical precision in predictions. In contrast, Goldman Sachs has a more cautious Neutral stance with a $140 target. Therefore, while $250 is optimistic, it’s far more likely that AMD could remain around its current $220 level.