Oppenheimer Just Set a Whopping $600 Target on AMD Stock. Here's Why.

Advanced Micro Devices (AMD) has already been in a sharp uptrend in 2026, riding a powerful wave of demand for artificial intelligence (AI) infrastructure and data center hardware. Yet, Oppenheimer’s senior analyst Rick Schafer believes the rally may be far from over. On Nov. 9, he upgraded AMD to “Outperform” and assigned a bullish $600 price target.

At the time of writing, AMD stock is trading at more than 2x its price at the start of this year. 

What Made Oppenheimer Upgrade AMD Stock

Schafer sees another 20% upside in AMD shares primarily because of rapid expansion in the firm’s data center business, which has become its primary growth engine. 

In the latest reported quarter, the chipmaker generated a record $8.55 billion in data center revenue, representing remarkable 97% growth on a year-over-year basis. The segment benefited from strong demand for EPYC server processors, early deployments of the MI455 AI accelerator family, and the rollout of Helios rack-scale systems.

Looking ahead, Oppenheimer expects AMD’s data center revenue to climb another 137% in 2027 and make up roughly 85% of its overall sales.

What Else Warrants Buying AMD Shares

Oppenheimer is convinced that Advanced Micro Devices’s position within the AI supply chain is becoming increasingly entrenched.

Rather than serving as a niche alternative in accelerated computing, the company is emerging as a major beneficiary of hyperscale AI spending, as evidenced by its recently expanded agreement with Alphabet's (GOOG) (GOOGL) Google.

Schafer expects spending from major artificial intelligence customers, including OpenAI, Oracle (ORCL), Anthropic (ANT), Meta (META), Microsoft (MSFT), and Humain, to help drive demand through 2027 and beyond.

The world’s largest cloud operators are projected to collectively spend about $1.3 trillion on capital expenditures next year, creating a substantial runway for AMD’s AI and data center unit.

What’s the Consensus Rating on AMD?

Interestingly, Oppenheimer is still among the more conservative Wall Street firms on AMD shares.

According to Barchart, the consensus rating on Advanced Micro Devices sits at “Strong Buy,” with the mean price target of about $662 indicating potential for a significant rally from current levels. 

On the date of publication, Wajeeh Khan did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.