Wedbush: AMD Data Center Growth to Beat Expectations Through 2027

According to a report from GuruFocus.com, Wedbush analysts expect Advanced Micro Devices (NASDAQ: AMD) to see data center revenue growth surpassing current estimates through 2027. The optimism is fueled by new artificial intelligence partnerships that are driving demand for both central processing units (CPUs) and graphics processing units (GPUs).

Rating Change

The report does not mention an official rating or price target change, but the analysis reflects a positive outlook on AMD's data center segment.

Analyst Rationale

Wedbush believes AMD will benefit from:

• New AI partnerships: Collaborations with major tech companies to enhance computing capabilities.
• Increased processor demand: Expanding AI infrastructure boosts demand for CPUs and GPUs.
• Expected revenue outperformance: Data center revenue is likely to exceed previous estimates.

Context

AMD competes with NVIDIA in the AI GPU market and faces challenges from Intel in the server CPU space. The stock has shown mixed performance over the past year, but the outlook for the data center sector remains positive.

What to Make of It

Wedbush's projections suggest AMD is well-positioned to capitalize on growing AI infrastructure demand. However, investors should monitor intense market competition and any shifts in capital expenditure by major tech companies.