Add as a preferred source on GoogleOppenheimer Upgrades AMD to Outperform, Sets $600 Target
Rick Schafer forecasts 135% growth in AMD’s data-center revenue next year, while the company posted a 45% year-over-year increase in third-quarter revenue.
Oppenheimer upgraded Advanced Micro Devices (AMD) to Outperform and set a $600 price target, with analyst Rick Schafer identifying data-center sales as the main driver of expected growth.
The firm raised its rating from Perform. The target is about 34% above AMD’s $449.04 close on Friday, Nov. 6. Shares had climbed 11% after the company’s third-quarter results but remained down 24% over the month through Friday’s close. Investors had been concerned about a possible slowdown in AI spending.
Schafer forecasts data-center revenue will rise 135% next year, bringing the segment to 85% of AMD’s total sales. Separately, capital spending by the five largest cloud providers is projected to reach about $1.3 trillion in 2027, up from $800 billion this year.
AMD’s third-quarter revenue was $13.38 billion, 45% higher than in the year-ago quarter. Data-center sales rose 97% year over year and 27% from the previous quarter. AMD CEO Lisa Su said she expects company sales to grow by at least 80% next year.
Enna Lee
ReporterEnna Lee reports on investing and digital-asset markets for TokenPost. Send corrections or tips to info@tokenpost.com.