Advanced Micro Devices (AMD, Financials) the semiconductor business that makes processors and graphics chips also might deliver better-than-expected data center revenue growth through 2027, Wedbush said.
The firm claimed AMD's income from central processing units and graphics processors used in data centers is poised to expand faster than originally projected following the company's Advancing AI event.
Wedbush raised its conviction for a significant acceleration in AMD's data center AI silicon and systems revenue in the second half of 2026 and into 2027 spurred by new agreements with Microsoft and Anthropic.
The prediction shows AMD is gaining some ground as cloud providers and artificial intelligence developers explore for more sources of CPU resources.
Wedbush also included Cerebras, Supermicro, Dell Technologies, Samsung Electronics and Micron Technology as firms that stand to gain from AMD's growing AI ecosystem and supply-chain needs.
More robust sales of data center products would help AMD get more exposure to expenditure on AI infrastructure and lessen its dependence on the more cyclical PC and gaming sectors.
The extract available does not include new revenue predictions.Investors will now look forward to AMD's next results on data center growth, partnership contributions and updated expectations for the second half of 2026.