AMD Stock Climbs 13% After Oppenheimer Upgrade to Outperform

TLDR

• AMD stock jumped more than 13% on Monday and opened at $515.21 on Wednesday, up 1.3%.
• Anthropic’s IPO filing shows AMD will buy about $2.5 billion of Class N stock in a $26 billion placement.
• The purchase falls under a July pledge of up to $5 billion tied to a chip supply deal.
• Oppenheimer upgraded AMD to Outperform with a $600 price target.
• Nvidia fell nearly 6% Tuesday as its board probes CEO Jensen Huang.

AMD wore two hats this week: chip supplier and investor. Both showed up in Anthropic’s IPO filing.

Advanced Micro Devices stock jumped more than 13% on Monday. It rose about 5% early Tuesday, then cooled to roughly 2% higher by midday.

Advanced Micro Devices, Inc., AMD

The stock opened at $515.21 on Wednesday, up 1.3%. That leaves it well below its 52-week high of $658.52.

The filing says AMD will buy about $2.5 billion of Class N stock in Anthropic. It is part of a $26 billion private placement.

Google, Nvidia, Broadcom, Micron, Microsoft and Taiwan Semiconductor Manufacturing Co. are in the same placement. It is expected to close alongside the IPO.

The $2.5 billion is not a new bet. It falls under a July pledge to buy up to $5 billion of Anthropic stock.

That pledge came with a hardware supply deal. Anthropic plans to deploy up to 2 gigawatts of AMD Instinct MI450 Series GPUs on Helios rack-scale systems.

The first gigawatt is expected to start in the first half of 2027. Anthropic launched its IPO roadshow on Tuesday.

The offering covers 825 million Class A common stock at an expected $70 to $78 apiece. Anthropic has applied to list on the Nasdaq under the ticker ANT.

Oppenheimer Brings the Numbers

Monday’s jump had a different spark. Oppenheimer upgraded AMD to Outperform from Perform with a $600 price target.

Analyst Rick Schafer sees data center revenue growing 135% in 2027. He expects AI GPU sales to pass EPYC server CPU revenue next year.

AMD also said its fifth-generation EPYC chips will power the host setup for Google Cloud’s new TPU 8tx system. That system offers hardware-enforced confidential computing.

Third-quarter results were already strong. Earnings came in at $2.09 per share against a $1.95 estimate, on revenue of $13.38 billion, up 44.7%.

Data center sales grew 97% in the quarter. Some coverage points to falling free cash flow and rising inventory as risks.

Nvidia’s Rough Week

Nvidia fell nearly 6% around midday Tuesday. Its board launched an independent probe into CEO Jensen Huang over an extramarital affair with a suspected Chinese agent, and he remains in the role.

The S&P 500, Dow Jones and Nasdaq all traded lower Tuesday. Analysts note that money moving between chip stocks is not the same as customers switching suppliers.

Wall Street holds a Moderate Buy consensus on AMD. The average price target is $642.47.

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