AMD: Anthropic Might Unlock $1,000

Advanced Micro Devices, Inc. is poised for a major AI event, with potential for another significant AI customer announcement following Microsoft and existing OpenAI and Meta deals. AMD’s recent Helios rack launch and Microsoft partnership reinforce its position, with speculation of an Anthropic deal that could further boost AI chip revenues. Consensus estimates project a $19 EPS in 2028, but internal targets and potential new deals suggest $20–30 EPS is achievable, making AMD’s current valuation at ~$500 not overly expensive. Risks remain around execution of large contracts and AI market growth, but another major deal could unlock a path to $1,000 per share.

After signing up Microsoft (MSFT) as a scale AI chip customer, Advanced Micro Devices, Inc. (AMD) might have another big customer announcement prior to the big AI event this week.