AMD’s Server And Data Center Success Is ‘Undeniable,’ Says Oppenheimer — Sees Favorable Pricing Ahead

• Oppenheimer upgraded AMD to ‘Outperform’ with a $600 price target, citing strong server and data center demand.
• The firm projects data center revenue growth of 135% in 2027, accounting for about 85% of AMD's total sales.
• CEO Lisa Su expects company-wide revenue growth exceeding 80% in 2027, despite supply constraints.

Advanced Micro Devices (AMD) stock drew an upgrade from Oppenheimer on Monday, with the firm calling the semiconductor company's server and data center success “undeniable” following another bullish earnings report.

According to TheFly, Oppenheimer analyst Rick Schafer upgraded AMD to ‘Outperform’ from ‘Perform’ with a $600 price target. The analyst sees favorable pricing trends as AMD negotiates next-generation deals from its position as an incumbent supplier.

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As of this writing, AMD stock was up more than 2% in Monday’s premarket and was among the top-trending tickers on Stocktwits.

Oppenheimer Sees AI Chip Sales Accelerating

According to Investing.com, Oppenheimer raised its estimates following AMD's latest earnings call and discussions with Chief Financial Officer (CF)) Jean Hu and Vice President of Investor Relations Matt Ramsay.

The firm expects data center revenue to accelerate significantly in 2027 as AI graphics processing unit (GPU) sales overtake EPYC server central processing unit (CPU) revenue.

Oppenheimer projects 135% data center revenue growth next year, representing 85% of total company sales, the report said. Its forecasts incorporate roughly 3 gigawatts of deployments in 2027 and 4 gigawatts in 2028.

The firm expects OpenAI and Meta (META) to drive AI chip growth through the first quarter of 2027, with Anthropic (ANT) ramping later in that quarter.

AMD's Q3 Earnings Show Data Center Momentum

AMD's fiscal third-quarter revenue rose 45% year over year to a record $13.4 billion, while adjusted earnings per share climbed 74% to $2.09. Data Center revenue nearly doubled to $8.5 billion, increasing 97% year over year, driven by EPYC processors and the launch of Instinct MI450 Series GPUs.

The company expects fourth-quarter revenue of approximately $17 billion, implying 66% year-over-year growth at the midpoint.

What Management Expects In 2027

During the earnings call, CEO Lisa Su said AMD expects company-wide revenue growth above 80% in 2027, with server CPU revenue nearly doubling and data center AI revenue growing much faster.

Su also said data center AI revenue is expected to surpass server CPU revenue in the fourth quarter of 2026. However, supply remains a constraint. Su acknowledged that demand exceeds available supply, while AMD continues working with suppliers to increase capacity.

Management expects accelerating growth as Helios deployments expand, with Su highlighting strong demand across its data center customer base.

What Retail Thinks About AMD Stock

On Stocktwits, retail investors’ sentiment around AMD stock remained ‘extremely bullish’ amid extremely high user message volume.

So far this year, AMD's share price has more than doubled, surging over 100%. By comparison, the iShares Semiconductor ETF (SOXX), which holds the stock, has risen over 30% during this period.

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