AMD shares rally after Google chip deal and analyst upgrade

AMD shares rose 13.3% on Monday following an Oppenheimer upgrade and a Google AI chip agreement, while Nvidia shares declined 4.3% amid an investigation involving CEO Jensen Huang. AMD gained around 25% against Nvidia over two days since the trading week began. Alphabet selected AMD’s EPYC processors for its new TPU 8tx systems, demonstrating how AMD can win business from cloud providers developing their own accelerators.

Oppenheimer upgraded AMD to Outperform, set a $600 price target and forecast 135% growth in its data-center revenue in 2027. Seaport Research Partners analyst Jay Goldberg praised CEO Lisa Su’s execution and said access to manufacturing capacity is a decisive competitive advantage. AMD relies on TSMC, and Su said the company had spent years securing production capacity and components to support its growth targets.

Goldberg said Intel’s manufacturing constraints have helped AMD gain server market share, while CPUs remain more important to AMD than GPUs. He also considered the recent semiconductor selloff excessive given strong orders and sustained cloud spending plans. Longer term, new factories and data centers expected to begin operating in 2028 could raise oversupply risks as electricity shortages ease, though Goldberg said the industry has not reached that point.