Key Takeaways
- AMD shares jumped 12% today after Oppenheimer upgraded the stock to Outperform with a $600 target.
- Broadcom and GE Vernova also rose in a broad AI infrastructure rebound.
- Analysts already expect AMD’s revenue to rise 83% in 2027, and their average target sits above Oppenheimer’s.
- AMD traded below its 5-year average forward P/E at Friday’s close, a fair price if Helios ships on schedule.
Advanced Micro Devices (AMD) is up 12% today after Oppenheimer’s Rick Schafer upgraded the stock to Outperform with a $600 price target, calling AMD’s server and data center success “undeniable.”
Broadcom (AVGO) and GE Vernova (GEV) rose too, as AI infrastructure stocks bounced back from last week’s midterm selloff.
Oppenheimer catches up to the Street
AMD’s data center revenue grew 97% to $8.5 billion in the third quarter. Oppenheimer forecasts 135% data center growth in 2027 as AMD ships about 3 gigawatts of computing capacity. But most of that growth is already in analysts’ numbers, with consensus revenue going from $52.2 billion this year to $95.7 billion in 2027:
The rebound reached AI’s suppliers
Broadcom rose 9% as Google rolled out two new versions of its TPU chips this morning, Bloomberg reported, and Broadcom is one of the partners Google designs them with. GE Vernova gained 7% after Constellation Energy raised its full-year guidance, with no sign of the data center moratoriums some feared after the midterms. That fits GE Vernova’s own third quarter, when orders rose 96% organically to $29 billion.
Applied Materials (AMAT) gained 10% ahead of its report later this week, which will show whether chipmakers are still buying equipment for AI. And Arista Networks (ANET) rose 9%: Arista’s third-quarter revenue grew 58.5%, its fastest since its IPO, which is hard to square with fears of a stalling AI buildout.
TIKR tracks 53 analysts on AMD. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on AMD, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See AMD’s Analyst Ratings
AMD looks cheap for the growth
AMD closed Friday at 30x forward earnings, below its 5-year average of 35x and less than half its 67x peak in June:
And Oppenheimer’s target sits below the Street’s average, which has climbed to $660 from $272 a year ago:
AMD still needs Helios to ship at gigawatt scale. But at about 32x after today’s jump, for a company analysts expect to nearly double its sales next year, AMD looks like a buy to me. Its fourth-quarter report in early February will tell us whether next year’s numbers hold up.
So what is AMD stock actually worth?
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Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
