Advanced Micro Devices (AMD) is gaining traction in artificial intelligence with clearer plans to rolling out its new Helios MI450 rack system, BofA Securities said Friday in a report.

AMD's outlook improved thanks to major partnerships with Oracle (ORCL), Meta (META), and Microsoft-backed (MSFT) OpenAI with the collaborations expected to speed up adoption of AMD's AI hardware across large-scale data centers, the report said.

AMD showcased its next-generation AI infrastructure at the Open Compute Project this week in San Jose, California.

AMD may capture more than 5% of the AI market by 2027, up from the forecast of 3% to 4%, BofA said. A key factor is OpenAI's planned deployment of a 1-gigawatt AI system starting in late 2026, and even if half of the project uses AMD hardware, it might add $1.4 billion in revenue for 2026 and $9.7 billion in 2027, the report said.

BofA raised its price target on AMD stock to $300 from $250 and reiterated its buy rating.

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