Oppenheimer Upgrades AMD to Outperform with $600 Price Target, Citing Data Center Growth
Oppenheimer upgraded AMD to Outperform with a $600 price target, driven by strong data center performance and rising AI chip demand.
US investment bank Oppenheimer upgraded Advanced Micro Devices (NASDAQ: AMD) from "Perform" to "Outperform" on November 9, 2026, setting a new price target of $600. The firm cited strong data center performance and growing demand for AMD's artificial intelligence (AI) chips following the company's latest earnings call as key reasons for the more bullish stance.
After discussions with AMD CFO Jean Hu and Vice President of Investor Relations Matt Ramsay, Oppenheimer highlighted server CPUs and initial shipments of the MI455 and Helios products as primary drivers behind approximately doubled data center growth. The analysts expect data center revenue to accelerate further through 2027, with GPU sales eventually surpassing EPYC server CPU revenue. AMD management has projected overall revenue growth exceeding 80% in 2027.
Oppenheimer estimates that AMD will reach approximately 3 gigawatts of data center capacity in 2027 and 4 gigawatts in 2028. Consequently, the firm predicts data center revenue will increase by 135% next year and eventually account for about 85% of total sales. This outlook is supported by AMD's plan to maintain an annual product release schedule, with the MI500 expected in 2027 and the MI600 following in 2028 to keep the company competitive in the AI accelerator market.
On the demand side, Oppenheimer expects OpenAI and Meta (NASDAQ: META) to support data center growth through the first quarter of next year, followed by another batch of orders from Anthropic in later quarters. Additionally, AMD shares could benefit from increasing demand for high-performance computing and related infrastructure investments. The five largest cloud service providers are expected to spend approximately $1.3 trillion on capital expenditures in 2027, up from $800 billion in 2026.