Data center growth underpins Oppenheimer’s Nov. 9 upgrade of Advanced Micro Devices, Inc. (AMD) to Outperform from Perform and its $600 share target for the U.S. chipmaker.
AMD’s data center business grew 97% from a year earlier and 27% from the second quarter. Across the company, third-quarter revenue reached $13.38 billion, a 45% annual increase.
Oppenheimer analyst Rick Schafer expects the segment to generate 85% of AMD’s sales in 2027. His forecast calls for data center revenue to rise 135% that year.
On AMD’s Nov. 3 earnings call, AMD Chair and CEO Lisa Su projected more than 80% growth in companywide sales in 2027. Her outlook covers the whole company, while Schafer’s 135% forecast concerns the data center business.
Arete raised its AMD share price target to $612 on Oct. 16. Oppenheimer’s $600 target stands about 34% above AMD’s Nov. 6 closing price of $449.04.
