AMD price target boosted on strengthening AI outlook

AMD hosted its Advancing AI 2026 lawsuit connected Wednesday and Thursday, featuring a keynote presumption from CEO Lisa Su and absorption followed by an capitalist roundtable. Wedbush noted that absorption avoided discussing near-term fiscal show up of AMD's second-quarter 2026 net report, leaving the lawsuit focused chiefly connected the company's broader AI strategy.

The analysts wrote that AMD is progressively positioning itself arsenic an "end-to-end compute franchise" spanning GPUs, CPUs, networking, software, lawsuit computing and carnal AI, portion highlighting a wide radical of endeavor and frontier AI partners.

"Net, we came distant incrementally much constructive connected AMD's competitory trajectory," Wedbush wrote, adding that conversations with server vendors and proviso concatenation participants astir the lawsuit pointed to continued acceleration successful AI infrastructure concern and opportunities crossed the broader ecosystem.

Wedbush wrote that recently announced agreements with Microsoft and Anthropic provided greater assurance that AMD's information halfway AI silicon and systems gross volition "substantially accelerate" successful the 2nd fractional of 2026 and done 2027.

The analysts besides highlighted improving proviso conditions, penning that AMD appears to beryllium making advancement successful addressing constraints and gathering elevated lawsuit request for information halfway compute. Based connected the lawsuit and manufacture checks, Wedbush accrued its assumptions for AMD's information halfway CPU and GPU gross maturation successful 2026 and 2027, lifting its gross and net expectations.

Wedbush besides pointed to AMD's concern with Cerebras, penning that the collaboration combines Cerebras' Wafer Scale Engine exertion with AMD systems to people ultra-low-latency AI inference workloads. Initial deployments are expected aboriginal this twelvemonth done Cerebras Cloud.

The analysts wrote that the narration is apt to beryllium gross accretive compared with anterior expectations for Cerebras and represents further validation of the company's attack to delivering high-speed AI inference capabilities.

Wedbush besides highlighted VAST Data arsenic a imaginable beneficiary of AI infrastructure spending, penning that the privately held institution appears to person emerged arsenic a important supplier of information absorption solutions for neocloud and AI model-building customers.