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AMD upgraded as sales continue to accelerate despite constraints: Oppenheimer
Oppenheimer upgraded AMD to Outperform from Perform, set a $600 price target, and raised its 2027 and 2028 adjusted earnings-per-share estimates. The analyst cited rising data center and server CPU revenue, while AMD's management expects next-year revenue growth above 80% despite supply constraints.
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What happened
Oppenheimer upgraded AMD to Outperform from Perform, set a $600 price target, and raised its 2027 and 2028 adjusted earnings-per-share estimates. The analyst cited rising data center and server CPU revenue, while AMD’s management expects next-year revenue growth above 80% despite supply constraints.
Confirmed
Global impact / market context
The upgrade and higher earnings estimates reflect expectations that AMD’s data center products and server processors will drive growth. If supply constraints persist, they could limit how quickly AMD turns demand and compute deals into shipments and revenue, tempering the benefit to earnings.
Analyst inference
The article reports a 9% rise in AMD shares during Monday morning trading, alongside Oppenheimer’s upgrade. The analyst expects data center growth to accelerate into 2027 and server CPU growth to more than double, but these are forecasts, not confirmed future results.
Confirmed
What to watch
- Track AMD’s next reported results for data center and server CPU revenue, which would show whether the growth cited by Oppenheimer is appearing in sales. Analyst inference
- Watch whether supply constraints ease enough for AMD to meet management’s expectation of more than 80% revenue growth next year; the article gives no resolution timeline. Analyst inference
- Check whether the planned 3GW of compute deals go live in 2027 as projected, since the article identifies this as part of up to 15GW of deals. Analyst inference