This analyst loves AMD right now

Roth Capital Markets analyst Suji Desilva reiterated his “Buy” rating and $300.00 price target on Advanced Micro Devices (Advanced Micro Devices Stock Quote, Chart, News, Analysts, Financials NASDAQ:AMD) in a Feb. 24 note following the company’s announcement of a multi-year AI infrastructure agreement with Meta, further validation of AMD’s growing traction in hyperscale AI infrastructure.

“We believe expansion of AMD’s already deep META relationship … represents a further step forward in the company’s place as a source of large-scale AI infrastructure,” he said, noting that equity components in both the Meta and OpenAI agreements create alignment with two major AI platform customers.

AMD announced a 6-gigawatt agreement with Meta for its AI Helios rack-based systems, including MI450 GPUs and next-generation EPYC CPUs, with initial shipments targeted for the second half of 2026. Meta will receive 160 million performance-based warrants vesting over five years as part of the arrangement.

Desilva said each gigawatt of installed AI capacity represents “tens of billions of dollars” in potential revenue, and that the Meta and OpenAI agreements provide significant support to his 2H26 and 2027 AI revenue growth forecasts.

He expects additional large-scale customer agreements to follow.

Desilva argued that AMD brings a differentiated value proposition to the competitive AI accelerator market through its workload-centric roadmap and chiplet-based GPU architecture, which allows customization between merchant GPU and ASIC approaches.

He also cited the combination of AMD’s Instinct GPUs and EPYC CPUs as well-positioned for next-generation AI workloads, including agentic and reasoning-based systems.

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