AMD received a rating upgrade from Oppenheimer analyst Rick Schafer on November 8, who raised the stock from 'neutral' to 'outperform' and set a $600 price target, implying 34% upside from the previous Friday's closing price of $449.04. The upgrade followed AMD's third-quarter earnings that exceeded Wall Street expectations. Schafer projects 135% revenue growth in AMD's data center business for 2027, driven by chip investments from OpenAI, Meta, Oracle, Microsoft, and Saudi Arabia's AI company Humain.
Oppenheimer Upgrades AMD to Outperform with $600 Target
Oppenheimer analyst Rick Schafer upgraded AMD's investment rating from 'neutral' to 'outperform' on November 8, setting a $600 price target. This represents a 34% upside from the stock's closing price of $449.04 on the previous Friday. AMD stock rose 13% on Monday, contrasting with Nvidia's decline of over 4%. According to reports from Barron's and CNBC, Schafer's optimism increased after recent exchanges with AMD management following the company's third-quarter financial results.
AMD CEO Lisa Su projected that revenue for 2027 will grow by at least 80%. Schafer noted that the upgrade was primarily based on AMD's own financial performance and AI business growth momentum, with his report making no reference to recent developments involving Nvidia.
Data Center Revenue Projected to Grow 135% in 2027
Schafer identified the data center segment as AMD's strongest growth engine. He forecasts that AMD's data center business revenue will surge 135% in 2027, benefiting from continued chip investment expansion by OpenAI, Meta, Oracle, Microsoft, and Saudi Arabia's AI enterprise Humain.
The analyst stated that AMD is gradually establishing itself as a long-term supplier in the AI computing market. Cross-generational customer orders and the Helios rack-level solution are expected to expand the scale of the data center business. The annual release of new products in the Instinct series of accelerators, combined with continuous improvements to the open software ecosystem, will strengthen competitiveness.
AI Computing Demand Strengthens AMD's Competitive Position
Schafer highlighted that the rapid development of agentic AI, which requires substantial computing resources, is expected to further boost demand for both GPUs and CPUs. This positions AMD to benefit from the expanding AI infrastructure requirements across multiple customer segments.
The analyst's optimistic forecast is built on AMD's financial performance and the momentum of its AI business operations, rather than external market factors affecting competitors.
FAQ
What price target did Oppenheimer set for AMD stocks on November 8?
Oppenheimer analyst Rick Schafer set a $600 price target for AMD on November 8, representing a 34% upside from the previous Friday's closing price of $449.04.
How much did Oppenheimer project AMD's data center revenue will grow in 2027?
Oppenheimer analyst Rick Schafer projected that AMD's data center business revenue will increase by 135% in 2027, driven by chip investments from OpenAI, Meta, Oracle, Microsoft, and Saudi Arabia's AI company Humain.
