Advanced Micro Devices Sees $280 Price Target and $150M Nutanix AI Investment
On February 24 Mizuho lifted its price objective on Advanced Micro Devices to $280 from $275 and maintained an Outperform rating, noting expanded Meta Instinct deployments. AMD will invest $150 million at $36.26 per share in Nutanix and allocate up to $100 million for joint AI platform development.
1. Price Target Increase
On February 24 Mizuho analyst Vijay Rakesh raised the price objective for Advanced Micro Devices to $280 from $275 and maintained an Outperform rating, citing strength in AI and data center demand.
2. Meta Instinct Partnership
The analyst highlighted AMD's expanded collaboration with Meta to ramp up Instinct GPU deployments, projecting a 600 basis-point gross margin dilution from warrants but forecasting that the deal will accrete revenue and earnings.
3. Nutanix AI Platform Investment
AMD agreed to invest $150 million at $36.26 per share in Nutanix and committed up to $100 million more for joint engineering and go-to-market efforts to build an open, full-stack AI infrastructure platform.