Advanced Micro Devices is on the verge of a big comeback after struggling of late, according to Oppenheimer. The investment firm upgraded the chipmaker to outperform from perform. Its $600 price target implies 34% upside from Friday’s close. “We are raising estimates and upgrading shares of AMD on the heels of another bullish earnings call and recent fireside chat we hosted,” analyst Rick Schafer said Sunday in a note to clients. “We see AMD emerging as a durable supplier of AI compute, with multi-gen customer wins and Helios rack-scale solutions supporting a materially larger [data center] business.” “Annual Instinct product cadence and [AMD’s open software stack] progress strengthen AMD’s competitive positioning, while compute-heavy agentic AI drives incremental [graphics processing units] and … [central processing unit] demand,” Schafer said. AMD 1M mountain AMD 1-month chart Shares of AMD have sunk more than 26% over the past month as investors have rotated out of semiconductor and other artificial intelligence-linked stocks amid concerns about financing risks across the industry. However, the company’s stock is likely to gain ground as its strategic partnership with Anthropic ramps up in the first quarter of 2027, according to Oppenheimer. AMD is also slated to launch its MI500 line of GPUs for high-performance computing and large-scale AI training in the second half of 2027, which should bolster its business and stock, per Schafer. Oppenheimer also models AMD hitting data center revenue growth of 135% in 2027, “with server CPU share/content gains and a smaller Client/Gaming contribution supporting a more attractive earnings mix,” the analyst said. The investment firm’s call falls in line with consensus on the Street. Of the 56 analysts covering AMD, 48 have a buy or strong buy rating on the stock, LSEG data shows. AMD shares rose more than 3% in the premarket Monday. Oppenheimer’s upgrade comes after AMD reported last week better-than-expected third-quarter earnings and revenue .
