AMD price target boosted on strengthening AI outlook

AMD price target boosted on strengthening AI outlook Proactive Fri, July 24, 2026 at 6:40 PM GMT+2 3 min read AMD Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) saw its price target raised to $600 from $450 by Wedbush following the chipmaker's Advancing AI 2026 event, with the analysts writing that new partnerships and improving supply chain conditions increased confidence in the company's data center AI growth trajectory. AMD hosted its Advancing AI 2026 event on Wednesday and Thursday, featuring a keynote presentation from CEO Lisa Su and management followed by an investor roundtable. Wedbush noted that management avoided discussing near-term financial performance ahead of AMD's second-quarter 2026 earnings report, leaving the event focused primarily on the company's broader AI strategy.

The analysts wrote that AMD is increasingly positioning itself as an "end-to-end compute franchise" spanning GPUs, CPUs, networking, software, client computing and physical AI, while highlighting a broad group of enterprise and frontier AI partners. "Net, we came away incrementally more constructive on AMD's competitive trajectory," Wedbush wrote, adding that conversations with server vendors and supply chain participants around the event pointed to continued acceleration in AI infrastructure investment and opportunities across the broader ecosystem. Wedbush wrote that newly announced agreements with Microsoft and Anthropic provided greater confidence that AMD's data center AI silicon and systems revenue will "substantially accelerate" in the second half of 2026 and through 2027.

The analysts also highlighted improving supply conditions, writing that AMD appears to be making progress in addressing constraints and meeting elevated customer demand for data center compute. Based on the event and industry checks, Wedbush increased its assumptions for AMD's data center CPU and GPU revenue growth in 2026 and 2027, lifting its revenue and earnings expectations. Wedbush also pointed to AMD's partnership with Cerebras, writing that the collaboration combines Cerebras' Wafer Scale Engine technology with AMD systems to target ultra-low-latency AI inference workloads.

Initial deployments are expected later this year through Cerebras Cloud. The analysts wrote that the relationship is likely to be revenue accretive compared with prior expectations for Cerebras and represents further validation of the company's approach to delivering high-speed AI inference capabilities. Wedbush also highlighted VAST Data as a potential beneficiary of AI infrastructure spending, writing that the privately held company appears to have emerged as a significant supplier of data management solutions for neocloud and AI model-building customers.

Story Continues While the analysts noted that VAST's software licenses can represent a meaningful cost for customers, they wrote that users highlighted benefits including improved storage efficiency, ease of use and faster returns on cloud infrastructure investments. On Super Micro Computer, Wedbush wrote that industry conversations supported the view that the company's recent margin expansion could be partly sustainable, potentially driven by a shift toward higher-value deployments and tight supply conditions. However, the analysts noted they would have greater confidence in the margin outlook with additional feedback on changes within Super Micro's business.

Wedbush said continued AI infrastructure investment should support further growth across the sector, citing conversations with neocloud providers, data center builders, server vendors and component suppliers that pointed to ongoing acceleration in data center expansion. The analysts also highlighted memory demand tied to AMD's AI products, noting that newer Instinct offerings are expected to require significantly more high-bandwidth memory. Wedbush wrote that tight NAND and DRAM availability could continue until additional supply comes online in 2028, with price increases potentially starting at 20% in the third quarter and exceeding 30% in some cases.

Shares of AMD are up more than 150% so far this year, trading hands at $538 on Friday afternoon.