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Today's Bonus Story Advanced Micro Devices Eyes $300 as AI Demand SurgesWritten by Thomas Hughes. Published 10/16/2025. 
Key Points - Oracle plans to deploy 50,000 AMD MI450 GPU AI accelerators.
- Hyperscale demand is blossoming, and revenue growth will top triple digits in the back half of 2026.
- Analysts applaud the news, lifting sentiment ratings and price targets, forecasting a 25% upside in October.
Advanced Micro Devices' (NASDAQ: AMD) stock outlook, long tied to anticipated GPU market-share gains, was affirmed by OpenAI and accelerated by Oracle (NYSE: ORCL). Oracle plans to deploy 50,000 of Advanced Micro Devices' MI450 AI accelerators in the third quarter of 2026. While small compared with OpenAI's plans, Oracle's deployment will likely expand over time, lead to more AMD-powered data centers, and meaningfully boost demand. Your account is not currently signed up for MarketBeat's free Monday morning stock ideas. Our team is going to be releasing an important pick on Monday morning (at 11am ET) and we want to make sure that you are able to see it. Add your name to the distribution list here The key takeaway is how quickly Oracle followed OpenAI. Because AMD GPUs offer strong performance at lower cost, greater memory capacity, and solid inference capabilities, they are an attractive alternative for hyperscalers. Based on the supply-demand picture reported by Wedbush, it isn't so much about AMD taking share from NVIDIA (NASDAQ: NVDA) as it is about meeting substantial unfilled demand. Investors should expect the remaining hyperscalers to follow suit, amplifying AMD's revenue growth outlook with each announcement. The exact figures are hard to pin down, but hyperscalers—including Amazon Web Services (AMZN), Alphabet (GOOGL), and Microsoft (MSFT)—already consume several gigawatts across their data center networks. Demand trends suggest these networks could grow two- to three-fold over the coming decade, with AMD chips playing a central role in that expansion. In this scenario, demand from the commercial hyperscale sector could more than quadruple OpenAI-level revenue over the next five years, potentially adding as much as $500 billion to the revenue outlook. Revenue forecasts rose in October, but the consensus still expects only $355.5 billion for the 2026–2030 period. Analysts Like What They See in AMD's Product Pipeline The analysts' response has been broadly favorable: many increased coverage, upgraded the stock, and raised price targets after the OpenAI announcement. The market view is that the shift to rack-scale capability is a game-changing move that will be highly accretive to the business. MarketBeat data shows 40 analysts rating the stock as a Moderate Buy, with total ratings up about 25% over the past 12 months and sentiment firming. Recent revisions include upgrades to Buy from Moderate Buy equivalents, giving a roughly 70% bias toward Buy and price targets that point to the $300 level. 
A move to $300 aligns with the technical outlook. The OpenAI announcement catalyzed about a 30% lift in AMD's share price, which may be only the first leg of the move. The stock is testing resistance at prior all-time highs while consolidating above key support levels; convergent MACD and a bullish stochastic signal support further upside. The stochastic is worth watching — it remains low enough to suggest ample room for the market to move higher. Q3 earnings could provide the next catalyst. Results are expected to be solid, with consensus calling for roughly 28% year-over-year revenue growth, but guidance will likely drive the market reaction. Guidance may include deal updates and further details on the MI450 lineup, which would reinforce the hypergrowth thesis. Cash Pile to Swell—Good News for Investors Cash flow has been a critical driver of NVIDIA's stock performance—and it will increasingly matter for AMD as well. While top-line growth is strong, cash flow remains important. NVIDIA's surge in AI-driven cash flow enabled large investments and a sizable cash reserve; AMD appears to be approaching a similar inflection point that could unlock significant shareholder value. NVIDIA is effectively a net-cash business relative to its liabilities; AMD is on the cusp of a comparable position. Although AMD's stock trades at a premium in 2025, it still offers value for long-term investors. The 55x price multiple forecast for 2025 falls to about 10x by 2035—potentially lower if current forecasts are conservative. That implies AMD's stock could rise by roughly 100% to 200% over the next two to five years (possibly sooner).
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