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AMD's AI Comeback: Chip Giant Poised for Major Growth
9 Nov
Summary
- Oppenheimer upgraded AMD, citing durable AI compute supply and customer wins.
- New MI500 GPUs and strategic partnerships to bolster AMD's business.
- Analysts are largely positive, with most recommending a buy or strong buy.
Advanced Micro Devices (AMD) is projected for a substantial comeback, having been upgraded by Oppenheimer from 'perform' to 'outperform.' The investment firm has set a $600 price target, suggesting a potential 34% increase from its recent closing price. This optimistic outlook stems from AMD's recent earnings call and subsequent discussions, which indicate the company is becoming a durable supplier in the AI compute market.
Oppenheimer's analyst, Rick Schafer, highlighted that AMD's annual Instinct product cadence and progress in its open software stack are strengthening its competitive position. The increasing demand for GPUs and CPUs driven by agentic AI is expected to fuel incremental growth. Furthermore, AMD's strategic collaboration with Anthropic is anticipated to ramp up in early 2027, providing a significant boost.
The company is also set to launch its MI500 line of GPUs in the latter half of 2027, targeting high-performance computing and large-scale AI training. Oppenheimer forecasts AMD's data center revenue to grow by 135% in 2027, supported by gains in server CPU share and content. This positive outlook is shared by the broader market, with 48 out of 56 analysts currently recommending a buy or strong buy for AMD stock.
