AMD stock today surges 12% after Oppenheimer upgrades Advanced Micro Devices, while Nvidia slides amid board investigation report

AMD stock price today: AMD shares recovered on Monday after a sharp sell off last week. The stock jumped after gaining support from a bullish Wall Street upgrade and new developments in the chipmaker's AI business.

Advanced Micro Devices stock rose more than 12% after Oppenheimer upgraded its rating to Outperform from Market Perform and even set a $600 price target.

However the stock remains more than 26% lower over the past month despite gaining around 105% this year.

AMD stock today: Oppenheimer sees AMD data centre revenue growing 135%

Oppenheimer analyst Rick Schafer said AMD was emerging as a long-term supplier of AI computing capacity. He pointed to customer orders across several product generations and the company's Helios rack-level systems.

The firm expects AMD's data centre revenue to increase 135% in 2027, potentially accounting for around 85% of total sales, as per a Rollingout report. These projections reflect Oppenheimer's expectations, not AMD's official guidance.

The upgrade comes as the company expands its presence in AI infrastructure. AMD said its fifth-generation EPYC processors would power the host infrastructure for Google Cloud's TPU 8tx system, which supports AI workloads and offers hardware-enforced confidential computing.

Investors are also watching upcoming opportunities involving Anthropic and AMD's MI500 series GPUs. Oppenheimer expects the Anthropic partnership to ramp up significantly by the end of the first quarter of 2027, while the MI500 series is scheduled for the second half of that year.

Lisa Su says AI chip demand is exceeding supply

AMD CEO Lisa Su has pushed back against concerns that AI chip demand could weaken. She described the market's view as short-sighted and said she did not expect demand to slow, adding that demand was exceeding supply.

The company's latest results offer support for its growth outlook. AMD reported third quarter revenue of $13.4 billion, which is up 45% year over year. And adjusted earnings reached $2.09 per share. Data centre revenue hit a record $8.5 billion, rising 97%.

AMD expects fourth quarter revenue of approximately $17 billion, plus or minus 3%, and has forecast overall revenue growth of more than 80% in 2027.

Nvidia investigation adds to semiconductor market pressure

AMD's recovery came as Nvidia faced scrutiny over an independent board investigation involving CEO Jensen Huang. Fox Business reported that the review followed allegations involving Alice Huang, a former executive at Nvidia customer Megaspeed, and suspected links to Chinese intelligence. The allegations have not been independently established.

While Nvidia has said it has no reason to believe national security or company secrets were compromised.

Nvida stock declined nearly 4% on Monday but that doesn't directly mean it caused AMD's gains. It is only to provide wider context for the semiconductor market. The Oppenheimer upgrade and Google Cloud announcement were separate developments supporting AMD's rebound.