Advanced Micro Devices NASDAQ:AMD received a higher price target from Wedbush after the brokerage raised its forecasts for the company's data center business, citing stronger demand for AI chips and expanding enterprise partnerships.
Wedbush maintained its Outperform rating and increased its price target to $600 from $450. The firm also lifted its financial estimates ahead of AMD's scheduled second-quarter earnings report on Aug. 4, forecasting quarterly earnings of $1.64 per share on revenue of $11.4 billion.
For full-year 2026, Wedbush now expects AMD to generate $49.2 billion in revenue and $7.22 in earnings per share, up from prior estimates of $47.2 billion and $6.95. It also raised its 2027 forecast to $81.2 billion in revenue and $14.74 in earnings per share.
The brokerage said new AI-related agreements with Microsoft NASDAQ:MSFT and Anthropic could accelerate AMD's data center revenue in the second half of 2026 and into 2027. Wedbush added that improving supply conditions may help AMD meet growing demand, while partners including Super Micro Computer NASDAQ:SMCI, Dell Technologies (DELL), Samsung Electronics (SSNLF), Micron Technology (MU) and Cerebras (CBRS) could also benefit.