Oppenheimer upgrades its recommendation on semiconductor company AMD to outperform from perform and sets a price target of 600 dollars. Investing.com reports this.
The research firm expects AMD’s data center revenue to increase by 135 percent next year and then account for 85 percent of the company’s total revenue.
Management simultaneously expects total revenue growth of more than 80 percent despite supply constraints.
Analyst Rick Schafer points to strong demand for AI chips and server processors, with OpenAI, Meta and Anthropic as key growth drivers.
The five largest cloud providers’ investments are expected to increase from 800 billion dollars this year to approximately 1,300 billion dollars in 2027.
