Wolfe Research analyst Chris Caso sees 38.6% upside as AMD positions itself as a top AI chip supplier through multi-billion-dollar OpenAI partnership
Top Analyst Upgrades AMD Ahead of Q3 Earnings
Advanced Micro Devices (AMD) received a bullish upgrade from Wolfe Research’s Chris Caso, who raised the stock to “Buy” from “Hold” and set a Street-high price target of $300.
- The new target implies a 38.6% upside from current levels.
- The upgrade comes as part of Wolfe’s semiconductor sector preview ahead of Q3 results.
Caso, a five-star analyst on TipRanks, ranks #137 out of over 10,000 analysts with a 62% success rate and a 24.7% average return per rating.
OpenAI Partnership Drives the Upgrade
The analyst’s bullish call hinges on AMD’s multi-billion-dollar chip deal with OpenAI, which he views as a game-changer for the company’s AI strategy.
- AMD will begin supplying its MI450 AI chips to OpenAI in late 2026.
- Caso sees this partnership as a catalyst for long-term revenue growth and market credibility in AI hardware.
“This deal offers a conservative path to $10+ earnings power by 2027,” Caso stated.
AI Revenues Could Surge by 2027
Caso’s projections show massive revenue potential from AI-driven growth:
- $15 billion in annual revenue from OpenAI alone by 2027
- $27 billion in total AI-related revenue for AMD by 2027
- $27.5 billion in server GPU revenue projected for 2027
- $4.5 billion in server GPU revenue expected in Q4 2026
This bullish view assumes that AMD executes successfully on the OpenAI deal and gains market share in the high-performance AI chip segment.
Upward Revision in CPU Forecasts
Beyond GPUs, AMD’s server CPU business is also seeing positive momentum.
- Rising demand for agentic AI applications has led to strong orders for AMD’s upcoming Turin and Venice CPUs.
- Caso raised his server CPU revenue estimates:
- $9.55 billion in 2025
- $11.4 billion in 2026
These numbers suggest AMD is increasingly competitive in the enterprise and hyperscaler markets.
Analyst Consensus Remains Mixed
While Wolfe Research is highly optimistic, overall analyst sentiment remains divided:
- Consensus Rating: Moderate Buy
- Average Price Target: $243.29, representing 12.4% upside
- YTD Performance: AMD stock has rallied over 79% in 2025
The divergence reflects uncertainty about execution risk, competitive pressure from Nvidia, and the timing of revenue ramp-ups from new AI deals.
Wolfe Research upgraded AMD stock to “Buy” with a $300 price target—highest on the Street—citing a transformative AI chip deal with OpenAI. Analyst Chris Caso projects massive AI-related revenue by 2027 and raised server CPU forecasts. While consensus remains mixed, AMD has already surged 79% YTD.
