Oppenheimer Upgrades AMD to Outperform With $600 Target, Sees Data-Center Revenue Up 135% in 2027

Oppenheimer analyst Rick Schafer upgraded AMD to Outperform from Perform and set a $600 price target, about 34% above Friday's close of $449.04. "We are raising estimates and upgrading shares of AMD on the heels of another bullish earnings call," Schafer wrote, according to CNBC. The stock rose in premarket trading Monday after falling more than 26% over the prior month.

The call rests on data center. Oppenheimer expects that segment's revenue to grow 135% in 2027 and reach about 85% of total company sales, as AI GPU sales overtake EPYC server CPUs even with EPYC itself expected to more than double. The firm models roughly 3 gigawatts of GPU capacity shipped in 2027 and 4 gigawatts in 2028, and sees favorable pricing as AMD negotiates next-generation deals as an incumbent. Keep the two growth numbers separate: the 135% is Oppenheimer's data-center forecast, while AMD management has guided company-wide revenue growth above 80% next year despite supply constraints.

On customers, Oppenheimer expects OpenAI and Meta to drive AI GPU growth through the first quarter of 2027, Anthropic to ramp late in that quarter, and Oracle, Microsoft and Humain to contribute into 2028, alongside an annual roadmap with MI500 in 2027 and MI600 in 2028. The upgrade brings Oppenheimer closer to a consensus that was already bullish: SentiSense analyst data shows a mean target of $659.77 across 47 analysts, with 45 of 53 rated analysts at buy, so the $600 target sits below the average. The risks the note flags are customer concentration, supply constraints and AI financing worries.