Barclays sees even more upside in store for Advanced Micro Devices after its recent Humain deal announcement. Analyst Tom O’Malley, who has an overweight rating on the chipmaker, raised his price target on the name by $20 to $130, implying 13% upside potential. The stock has rallied this week, rising nearly 12% week to date, after AMD struck a deal with Saudi company Humain to supply the company chips for building 500 megawatts of AI capacity. Humain, which will be owned by Saudi Arabia’s Public Investment Fund, has committed $10 billion to the project, AMD said. Also fueling the rally this week, AMD announced on Wednesday that its board of directors has authorized $6 billion in share buybacks . “HUMAIN is one of the more significant company wins to date and is notably split equally in power budget with NVDA,” the analyst wrote on Thursday. O’Malley added that the $10 billion chip deployment will be across “multiple chip generations (starting with MI355) and move to full rack scale solutions at MI400 (which include AMD CPUs/GPUs/NiCs/software). “Think HUMAIN ramps aggressively and in increments of 75-100 [megawatts] with $10B a target, not a cap.” AMD 5D mountain AMD, 5-day Beyond the Humain deal, O’Malley said the company is “messaging another Tier 1” customer, with more details on that matter potentially coming next month. Additionally, he noted that the guidance for the second half of the year with its Client segment is more of a reflection of conservatism in the macro environment rather than “concrete order downticks.” Like O’Malley, Wall Street is largely bullish on AMD, with 35 analysts among the 52 in total covering it having a strong buy or buy rating, per LSEG. While this week’s gains put the stock’s one-month advance at more than 30%, it has still seen declines year to date, falling almost 5% in that period.
