Analyst Rick Schafer revised the investment outlook for the chipmaker following a series of discussions with the company’s financial leadership. Based on AMD’s recent earnings performance and its expansion into the server market, Oppenheimer raised the company’s rating from Perform to Outperform and established a price target of $600.
The firm forecasts that AMD’s data center business will grow 135% next year, accounting for 85% of total revenue. Schafer anticipates that revenue from the company’s AI GPUs will surpass that of EPYC server CPUs by 2027, supported by a roadmap that includes the MI500 and MI600 GPU launches in 2027 and 2028. Growth is expected to be led by GPU demand from OpenAI and Meta through the first quarter, with Oracle and Microsoft continuing to contribute into the first half of 2028.
