Oppenheimer Upgrades AMD to Outperform With $600 Target

Oppenheimer upgraded Advanced Micro Devices from perform to outperform on Sunday, establishing a price target of $600. Analyst Rick Schafer based the upgrade on a bullish earnings call and the company's positioning as a durable supplier of AI compute.

The investment firm expects the chipmaker to benefit from multi-generation customer wins and Helios rack-scale solutions. Growth is further anticipated through a strategic partnership with Anthropic scheduled to ramp up in the first quarter of 2027 and the launch of the MI500 GPU line in the second half of 2027. These developments are expected to strengthen high-performance computing and AI training operations.

Oppenheimer projects data center revenue will grow by 135% in 2027. This upgrade follows third-quarter earnings and revenue results that exceeded expectations, providing a recovery signal after shares previously fell over 26% due to industry-wide financing concerns.