Oppenheimer upgrades AMD to outperform with a $600 price target

Oppenheimer thinks Advanced Micro Devices is ready for a comeback. The investment firm upgraded the chipmaker to outperform from perform and attached a $600 price target to the call.

That target implies 34% upside from Friday’s close.

What Oppenheimer is betting on

The upgrade came from Oppenheimer analyst Rick Schafer on November 9, 2026. His $600 target is measured against AMD’s closing price of $449.04 on November 6, 2026.

The call follows AMD’s third-quarter earnings report. Data center revenue hit a record $8.5 billion, up 97% year over year.

Total company revenue for the quarter came in at $13.4 billion, a 45% year-over-year increase. That means the data center unit now accounts for well over half of everything AMD sells.

Two product lines did most of the heavy lifting. Sales of EPYC CPUs, AMD’s server processors, drove the surge alongside the introduction of the MI450 and Helios GPUs.

The guidance is where it gets interesting

AMD expects around $17 billion in revenue for the fourth quarter of 2026, which would mark approximately 66% growth year over year.

Then there’s 2027. AMD CEO Lisa Su anticipates revenue growth of more than 80% for the year, with the data center segment doing most of the work.

That forecast comes despite supply constraints.

Oppenheimer’s own projections go further on the data center side. The firm expects data center revenue to grow approximately 135% in 2027.

If that plays out, the segment could make up roughly 85% of AMD’s total sales by 2027.

Oppenheimer also expects a notable shift in the mix. AI GPU sales are projected to surpass EPYC server CPU revenue within the same timeframe.

Who is buying

The demand picture centers on a short list of very large customers. OpenAI, Meta, Anthropic, Oracle and Microsoft are among the major buyers driving demand for AMD’s chips.

AMD has framed its plans in exactly those terms. The company modeled 3 gigawatts of AI deployment for 2027 and 4 gigawatts for 2028, paired with a new GPU roadmap.

Why the upgrade matters for investors

The risks are easy to spot. Customer concentration is the obvious one: a handful of hyperscalers and AI labs account for a large slice of demand, so any pullback in their spending would hit AMD directly.

Supply constraints are the second watch item. Management has acknowledged them, and a growth forecast is only as good as the factory capacity behind it.

Execution on the new GPU roadmap is the third. The MI450 and Helios products are central to the story, and the 3-gigawatt and 4-gigawatt deployment models depend on them shipping on schedule and performing as promised.

The next checkpoint is clear. The fourth-quarter report will show whether AMD can deliver its approximately $17 billion revenue outlook, and whether Oppenheimer’s comeback thesis holds up against actual results.