AMD price target boosted on strengthening AI outlook

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 compu...