Oppenheimer Upgrades AMD to Outperform, $600 Price Target

Oppenheimer analyst Rick Schafer upgraded AMD (NASDAQ: AMD) from Perform to Outperform with a price target of $600.

“We are raising estimates and upgrading shares of AMD on the heels of another bullish earnings call and recent fireside chat we hosted w/CFO Jean Hu and VP IR Matt Ramsay.

EPYC CPU and initial MI455/Helios shipments drove ~2x DC growth in 3Q. DC accelerates materially into 2027 as DCAI (GPU) sales overtake EPYC server CPU, despite the latter up >2x next year.

Mgmt. sees top line up >80% next year despite supply constraints. We model roughly 3GW/4GW in 2027/2028, respectively. We see DC up 135% (85% of sales) next year.

AMD committed to one year cadence to keep pace with peers (MI500 in 2027, MI600 in 2028). We see favorable pricing trends as AMD negotiates next-gen deals as an incumbent.

Compute-heavy agentic AI a tailwind to GPU and CPU.

We look for OAI and META to drive DCAI growth through 1Q. ANT ramps late 1Q.

We expect all three (plus ORCL, MSFT, Humain) to ramp relatively linearly into 2028. Visibility extends through 1H28.

We see any incremental land/power/ shell political (midterm) risk unlikely before 2H28 with construction of many planned projects already underway.

Demand for high-performance compute remains robust as top-five CSP capex expected ~$1.3T in CY27 (from $800B this year). AMD’s server CPU and DCAI success is undeniable.

Upgrading to Outperform (from Perform) w/ $600 target.”

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