Advanced Micro Devices (NASDAQ: AMD) shares climbed more than 4% to around $470 in Monday’s premarket trading after Oppenheimer upgraded the chipmaker from Perform to Outperform and set a $600 price target, citing expectations for accelerating artificial intelligence chip sales.
The target is approximately 28% above AMD’s indicated premarket share price. Analyst Rick Schafer raised his estimates following the company’s third-quarter earnings and discussions with Chief Financial Officer Jean Hu and Vice President of Investor Relations Matt Ramsay.
AMD shares fell 17.26% on Thursday before rebounding 11.04% on Friday to close at $449.04. The latest premarket gain extended that recovery, although the stock remained about 4% below its pre-selloff November 4 closing price of $488.78.
Oppenheimer Projects 135% Data Center Revenue Growth in 2027
Oppenheimer expects AMD’s data center revenue to grow 135% year over year in 2027, with the segment accounting for approximately 85% of total company sales.
Schafer projects that annual revenue from data center AI graphics processing units (GPUs) will exceed revenue from AMD’s EPYC server CPUs in 2027, even as the server processor business more than doubles.
His model includes roughly 3 gigawatts of AMD AI deployments in 2027 and 4 gigawatts in 2028. The analyst also cited AMD’s planned annual accelerator releases, including the MI500 in 2027 and MI600 in 2028, as part of his growth outlook. Schafer also expects favorable pricing trends as AMD negotiates next-generation deals from its position as an established supplier.
OpenAI and Meta are expected to be major contributors to data center AI growth through the first quarter of 2027, while demand linked to Anthropic is projected to accelerate toward the end of that quarter, according to Oppenheimer.
The covering analyst also expects those three companies, along with Oracle, Microsoft and Saudi Arabia’s Humain, to contribute to continued expansion into 2028. These expectations reflect the analyst’s demand forecasts rather than newly announced customer contracts.
AMD reported record third-quarter results, with data center revenue of $8.55 billion, up 97% YoY, driven by demand for EPYC processors and Instinct AI accelerators. The segment accounted for approximately 64% of AMD’s $13.38 billion in quarterly revenue.
AMD Chief Executive Lisa Su separately projected companywide revenue growth exceeding 80% in 2027, with data center products expected to generate more than 80% of total sales. Su also said demand was exceeding available supply and that AMD was working with supply-chain partners to increase capacity.
During the November 3 earnings call, AMD executives also said they expected quarterly data center AI revenue to surpass server CPU revenue in the fourth quarter of 2026. That would mark the first quarterly crossover, while Oppenheimer projects AI GPU revenue to surpass EPYC server CPU revenue for the full year 2027.
Separately, Advanced Micro Devices Tokenized bStocks (AMDB) was trading at $466.45, up 4.1% over the preceding 24 hours, according to CoinMarketCap. The tokenized instrument tracks AMD shares but trades separately from the Nasdaq-listed stock, with its percentage change measured over a different period.