- Wedbush raised its forecasts for the company's data center business, citing stronger demand for AI chips and expanding enterprise partnerships.
- Wedbush increased its price target to $600 from $450, maintaining its Outperform rating ahead of AMD's earnings report on Aug. 4.
- Shares of Advanced Micro Devices fell 8.2% to reach $479.24, driven by a broad semiconductor sector selloff and concerns over AI infrastructure spending sustainability.
- Wedbush forecasts quarterly earnings of $1.64 per share on revenue of $11.4 billion for AMD's second-quarter earnings report.
- For full-year 2026, Wedbush expects AMD to generate $49.2 billion in revenue and $7.22 in earnings per share, up from prior estimates.
- New AI-related agreements with Microsoft and Anthropic could accelerate AMD's data center revenue in the second half of 2026 and into 2027.
- Improving supply conditions may help AMD meet growing demand, benefiting partners including Super Micro Computer, Dell Technologies, and others.
AMD's stock is facing significant pressure, dropping 8.2% to $479.24 amid a broader semiconductor sector selloff. This decline is attributed to concerns over AI infrastructure spending sustainability and insider selling activity totaling over $158 million in shares over the past three months.
Despite this downturn, Wedbush has raised its price target for AMD to $600, up from $450, reflecting confidence in the company's future performance. The firm has also increased its earnings estimates ahead of AMD's upcoming second-quarter earnings report on August 4, projecting earnings of $1.64 per share on revenue of $11.4 billion.
For the full year 2026, Wedbush anticipates AMD will generate $49.2 billion in revenue and $7.22 in earnings per share, an increase from previous estimates. The 2027 forecast has also been raised to $81.2 billion in revenue and $14.74 in earnings per share.
The brokerage noted that new AI-related agreements with Microsoft and Anthropic could significantly boost AMD's data center revenue in the latter half of 2026 and into 2027. Additionally, improving supply conditions may help AMD meet the growing demand, benefiting partners like Super Micro Computer, Dell Technologies, Samsung Electronics, Micron Technology, and Cerebras.67
However, the market remains cautious, with the FOMC meeting influencing interest rate expectations, creating headwinds for premium-valuation growth stocks like AMD. Mizuho has also raised its price target on AMD to $625, indicating strong analyst confidence in the company's trajectory in AI and data centers.
“Wedbush forecasts AMD will generate $49.2 billion in revenue and $7.22 in earnings per share for 2026, up from previous estimates. However, insider selling of over $158 million and concerns over AI infrastructure spending sustainability are contributing to the stock's recent decline.”
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