Shares in Advanced Micro Devices (AMD) stock are higher on Tuesday following the company’s announced partnership with OpenAI. AMD is the latest AI tech giant to strike a deal with the ChatGPT developer, with OpenAI deploying 6 gigawatts of AMD GPUs over the coming years, according to the new deal. 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 last week.

While AMD stock has had a down week due to new tariff threats in the US, it is still one of the best-performing stocks this year in tech. Up over 96% YTD, AMD is riding the wave of AI and semiconductor-based stocks. AMD is expected to benefit from this partnership and grow its revenue and non-GAAP EPS, so much so that many analysts have upped their forecasts for Advanced Micro Devices stock. AZ holds a $250 target for AMD stock, while Rosenblatt is similarly optimistic as AZ, with a $250 target

Goldman Sachs also sees the announcement as “a substantial positive for AMD.” However, the firm maintained its Neutral rating and cited “potential funding risks tied to the business and likely high customer concentration for AMD’s GPU datacenter business.” With stock currently sitting at $235, the analysts see AMD falling back to the $150 range. The stock is trading near the top of its 52-week range and above its 200-day simple moving average.

OpenAI has sparked stock rallies for different companies it has announced partnerships with this year, including NVDA, AMD and more. The AI company currently generates around $13 billion in annual revenue and is committed to spending over $1 trillion across the next decade.