Advanced Micro Devices shares rebounded sharply on Monday after Oppenheimer upgraded the chipmaker to Outperform from Perform and set a $600 price target, with analysts pointing to record data center results and accelerating AI processor demand as the core reasons for renewed confidence. The stock traded at $469.19 in Monday’s premarket, up 4.49%, after closing Friday at $449.04 for an 11.04% gain. Together the two sessions recovered the 17.26% drop that took shares to $404.40 on 5 November.
The upgrade comes just days after AMD reported record third-quarter revenue of $13.4 billion, up 45% year over year, and non-GAAP earnings of $2.09 per share, up 74%. Data center revenue reached a record $8.5 billion, up 97%, while the company guided for fourth-quarter revenue of approximately $17 billion, implying roughly 27% sequential growth. Oppenheimer’s Rick Schafer called the server and data center record 'undeniable,' modeling 135% data center revenue growth in 2027 and about 3 gigawatts of GPU deployments that year, rising to 4 gigawatts in 2028. The brokerage expects data center to reach about 85% of total sales.
CEO Lisa Su has pushed back against the post-earnings selloff, arguing the market is 'short-sighted' and that AI chip demand remains higher than supply. She said AMD expects company-wide revenue growth above 80% in 2027, with data center AI revenue more than doubling. Su also said AI revenue from data centers should surpass server CPU revenue in the fourth quarter of 2026, while the company is working with suppliers to expand production capacity. Oppenheimer held discussions with CFO Jean Hu and investor relations VP Matt Ramsay before raising estimates, and also expects OpenAI and Meta to support demand through the first quarter, with Anthropic ramping deployments toward the end of the period.
Nvidia’s decline also added to AMD’s relative appeal on Monday, with Nvidia shares falling nearly 7% amid reports of a probe into CEO Jensen Huang’s relationship with a woman identified by intelligence agencies as a suspected Chinese spy. Citi’s $800 target from early October was viewed as a pre-existing call rather than a response to the quarter, while UBS kept a Buy rating and JPMorgan remained Neutral. AMD stock remains up 105.13% year to date and 77.16% over twelve months, but trades at 101.47 times trailing earnings, leaving valuation tied to the 2027 supply case rather than results already booked.
