Analysts expect a strong recovery for AMD following recent weakness. Oppenheimer upgraded the stock to outperform and set a $600 price target, indicating roughly 34% upside from Friday’s close. In a recent note, analyst Rick Schafer highlighted AMD’s role as a leading provider of AI compute, citing new customer wins and rack‑scale Helios solutions that expand its data‑center business. Continued product cycles for the Instinct line and progress on AMD’s open software stack reinforce its competitive position, while demand for GPUs driven by agentic AI and CPU demand support growth. Although AMD’s shares have dropped more than 26% over the past month as investors shifted away from AI‑related stocks, a partnership with Anthropic slated for early 2027 and the upcoming launch of the MI500 GPU in late 2027 are expected to boost performance. Oppenheimer projects 135% data‑center revenue growth in 2027, driven by higher server CPU share and a smaller client‑gaming contribution, leading to a more favorable earnings mix. The upgrade aligns with broader market consensus, as 48 of the 56 analysts covering AMD have buy or strong‑buy ratings. AMD’s shares rose over 3% in premarket trading following its better‑than‑expected third‑quarter earnings and revenue.
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