Wedbush raises AMD (AMD.US) target price to $600: AI conference reveals “end-to-end” ambitions, 2027 earnings forecast surges by 20%

According to Zhitong Finance APP, following AMD's successful "Advancing AI 2026" conference in San Francisco, Wall Street brokerage Wedbush Securities released a high-impact research report on Monday, sharply raising AMD's (AMD.US) target price from $450 to $600 while maintaining an "Outperform" rating. Even more noteworthy, Wedbush simultaneously revised up AMD's 2026 and 2027 performance outlook—2027 revenue estimates jumped directly from $77.9 billion to $81.2 billion, and EPS was raised from $12.33 to $14.74.

Wedbush analyst Matt Bryson pointed out in the report that AMD has successfully repositioned itself as "an end-to-end computing business covering GPUs, CPUs, networking, software, as well as rapidly growing client and physical AI sectors," and showcased "an extremely strong lineup of cutting-edge laboratories and enterprise partners" at the conference. The core of this strategic transformation is that AMD is evolving from a standalone chip supplier to an AI infrastructure provider capable of directly competing with Nvidia (NVDA.US) at the system level.

The Confidence Behind the Target Price Hike: 2027 EPS Forecast Surges 20%

The scale and scope of Wedbush’s upward revision exceeded market expectations. Specifically:

Q2 2026 forecast: EPS increased from $1.61 to $1.64, revenue from $11.3 billion to $11.4 billion

For the full year 2026: EPS raised from $6.95 to $7.22, revenue from $47.2 billion to $49.2 billion

For the full year 2027: EPS raised significantly from $12.33 to $14.74 (+19.5%), revenue from $77.9 billion to $81.2 billion (+4.2%)

Bryson clearly stated that recently announced collaborations with Microsoft (MSFT.US) and Anthropic have given Wedbush “significantly greater confidence” in AMD’s datacenter AI chip/system revenues accelerating sharply in the second half of 2026 and in 2027. Additionally, discussions with server manufacturers and supply chain participants indicate AMD is better handling supply chain challenges to meet increasing datacenter computing demand.

Advancing AI 2026: A “Full-Stack Revolution” from Chips to Systems

From July 23 to 24, AMD held the Advancing AI 2026 conference in San Francisco, directly catalyzing this upgraded rating. AMD CEO Lisa Su unveiled a matrix of seven full-stack AI products, spanning hardware, networking, and software.

A leap from chips to rack-level systems. The Helios rack-level AI platform was the highlight of the event; a single rack can deploy up to 72 Instinct MI455X AI accelerators, paired with 18 Venice EPYC CPUs based on the Zen6 architecture. The system delivers FP4 peak compute of 2.9 ExaFLOPS and is equipped with a unified 31TB HBM4 memory pool. According to AMD, compared to Nvidia’s Vera Rubin NVL72 solution, Helios delivers 15% higher AI compute, 50% more HBM memory, 50% greater east-west bandwidth, and up to 30% more tokens per dollar. Lisa Su stated that initial shipments of Helios will begin in September 2026, with volumes ramping in Q4 and the first half of 2027.

Agentic AI fueled explosion in CPU demand. AMD executives noted that as AI shifts from model training to large-scale deployment of Agentic AI, the role of CPUs is being redefined. AI agents require massive amounts of general-purpose compute for inference, scheduling, and orchestration—areas where x86 CPUs excel. Lisa Su expects the CPU-to-GPU ratio to potentially shift from the current 1:4 to 2:1 in some scenarios—meaning each GPU may require two CPUs. AMD reaffirmed its goal to capture over 50% market share in server CPUs.

In her speech, Lisa Su provided the latest industry outlook: By 2030, the global AI computing market is expected to exceed $2 trillion, with the AI accelerator market reaching $1.4 trillion and the datacenter CPU market $220 billion. She emphasized that the AI industry has shifted from a GPU-centric era to a “full-stack era of CPU+GPU+DPU+FPGA+software ecosystem synergy.”

The “Biggest Leap” in Software Ecosystem. AMD launched the ROCm.ai universal AI software platform—described by executives as the “biggest software leap since the strategic initiative began.” Collaborations with OpenAI (Codex) and Anthropic (Claude) will significantly improve developer access to AMD’s platform in the months ahead.

Customer Matrix: Microsoft, Anthropic, Meta, OpenAI All On Board

AMD’s client roster is impressive—Lisa Su confirmed that Anthropic, OpenAI, and Meta have committed to deploying Helios systems. The partnership with Anthropic is particularly pivotal—AMD will begin delivering the first 1-gigawatt of MI450 accelerator compute in the first half of 2027. Coupled with the previously announced Microsoft Azure deployment, AMD has increased its committed AI accelerator deliveries to 14 gigawatts.

Anthropic: Announced on July 22, Anthropic will deploy up to 2 gigawatts of AMD MI450 series GPUs in AMD Helios rack solutions, with the first gigawatt beginning deployment in H1 2027. AMD is also committing up to $5 billion in strategic equity investment to Anthropic. AMD will work with Anthropic’s Claude model to optimize Instinct GPU workloads and accelerate ROCm development.

Microsoft: Azure data centers will deploy AMD Helios rack systems, with Helios expected to ship to customers in the second half of 2026.

Meta, OpenAI, and Oracle have all confirmed deployment plans for Helios systems. According to Lisa Su, Helios is not completed independently by AMD and handed over, but is co-designed with leading companies such as OpenAI, Meta, and Anthropic—letting customers participate earlier in product definition, from chips and software through to datacenters and supply chain.

Supply Chain Beneficiaries: Ripple Effects from Servers to Storage

Wedbush emphasized that AMD’s announcements at the conference will positively impact many supply chain partners:

Cerebras (CBRS.US): Its wafer-scale engines for inference will be used with AMD’s Helios racks

Super Micro Computer (SMCI.US) and Dell (DELL.US) are expected to see profit growth

Memory suppliers Samsung Electronics and Micron (MU.US), as AMD's main memory suppliers, will continue to benefit

The Market “Expectation Gap”: Share Price Falls, Wall Street Remains Bullish

Despite Wedbush’s significant target price hike, AMD shares fell over 5% on July 27, closing around $494.95. This seemingly contradictory response reflects the current valuation challenges facing AI chip stocks—after sharp gains in the first half of 2026, any “in-line” positive news is already well-priced in, and further upside depends on ongoing outperformance.

AMD is transforming from a “follower” to a “definer.” The ramp of Helios rack systems, the scaling of Venice CPUs, the advancement of the MI400 series accelerators, and the refinement of the ROCm.ai software ecosystem together form a complete “end-to-end” AI computing puzzle. More crucially, the Agentic AI-driven CPU demand re-rating is fundamentally changing the game—as each GPU may require two CPUs, AMD’s leadership in the x86 server CPU market becomes a unique engine for unprecedented growth.

Wedbush’s $600 target price implies about 21% upside from Monday’s close. AMD is scheduled to report Q2 2026 results on August 4. The market will then get the latest data to validate its AI business growth momentum—and Wedbush’s freshly revised forecast will serve as a key benchmark for investors evaluating those results.

Wall Street Analysts Follow Suit: AMD Becomes a “Must-Own” Pick

Wedbush is not alone in raising AMD’s target price.

Futurum Equities set Wall Street’s highest target of $800, expecting AMD’s GPU revenue to reach $38 billion next year.

UBS raised its target from $700 to $730, maintaining a Buy rating. Analysts specifically note that AMD’s server CPU gross margin exceeds its overall gross margin by roughly 10 percentage points—the highest-margin product line is also the fastest growing.

Bank of America lifted its target to $620, stating that AMD has “successfully transformed from a commercial GPU supplier to a full-stack, rack-level accelerator system provider.”

Goldman Sachs reiterated its Buy rating with a 12-month target of $640. Jefferies maintained Buy with the same $640 target. Benchmark raised its target from $485 to $685.

According to S&P Global’s survey of 51 analysts, AMD has a consensus rating of “Strong Buy” with an average target price of $575.49.