Wedbush is optimistic about AMD data center growth and raises target price
Wedbush Securities released a research report on Monday, maintaining its view on "Outperform" rating, and significantly raised its target price, citing optimism about the strong growth momentum of its data center business in the CPU and GPU fields, as well as the demand boost brought by the newly reached artificial intelligence partnership. Wedbush expects AMD's data center revenue to accelerate from the second half of 2026 to 2027. This expectation is consistent with the signal recently released by AMD CEO Su Zifeng. She previously said that based on the strong demand for the "Helios" platform and MI450 series GPUs, the company is confident in achieving the goal of annual data center AI business revenue of tens of billions of dollars in 2027. Wedbush specifically pointed out that with The new AI cooperation agreement with Anthropic will become a key driver of AMD's data center revenue. Last week, AMD announced a strategic cooperation with Anthropic, which will deploy up to 2 GW of AMD Instinct MI450 series GPUs in its "Helios" cabinet-level solution. The first 1 GW deployment is expected to start in the first half of 2027. AMD also committed to make a strategic equity investment of up to $5 billion in Anthropic. According to the latest financial forecast, Wedbush raised AMD's 2026 full-year revenue forecast from $47.2 billion to $49.2 billion, and its earnings per share forecast from $6.95 to $7.22. It also raised its 2027 revenue forecast to $81.2 billion and its earnings per share forecast to $14.74. AMD is expanding its influence in the field of AI infrastructure through its "Helios" rack-level AI system. The system integrates Instinct MI455X GPU, 6th generation EPYC "Venice" CPU, Pensando network technology and ROCm software, directly benchmarking NVIDIA's complete machine solution. Microsoft has announced that it will become a core customer of Helios and will deploy the system in Azure data centers. Technology giants such as Meta and OpenAI have also begun to adopt the platform. Wedbush also pointed out that super microcomputers, Technology, Samsung Electronics, Technology and AMD partners such as Cerebras are also expected to benefit. AMD plans to announce its second-quarter financial results on August 4, when the market will get more details on the progress of its data center business.