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AMD Soars: AI Chip Demand Fuels Price Target Hike
28 Jul
Summary
- Wedbush raised AMD's price target to $600 from $450.
- New AI agreements with Microsoft and Anthropic to boost revenue.
- Full-year 2026 revenue forecast increased to $49.2 billion.
Advanced Micro Devices (AMD) has seen its price target ascend to $600, a notable increase from $450, according to Wedbush. This upgrade stems from enhanced projections for AMD's crucial data center segment, fueled by robust demand for artificial intelligence chips and deepening enterprise collaborations.
Wedbush has also adjusted its financial outlook for AMD, forecasting second-quarter earnings of $1.64 per share on $11.4 billion in revenue ahead of the August 4th report. The firm's full-year 2026 expectations now stand at $49.2 billion in revenue and $7.22 per share in earnings.
Further boosting confidence, Wedbush anticipates AMD's data center revenue to surge in late 2026 and into 2027. This projected acceleration is attributed to new AI-related agreements with tech giants like Microsoft and Anthropic, alongside improving supply conditions expected to meet escalating market demand.
