AMD stock price target raised to $270 from $190 at Wedbush on AI deals
Wedbush raised its price target for AMD (NASDAQ:AMD) from $190 to $270, while maintaining its “Outperform” rating, citing the potential for significant future revenue growth from the company’s key new AI partnerships. AMD’s current share price of $218.09 has risen 129% over the past six months, demonstrating strong growth momentum. According to data from , the company maintains a strong financial position, with a current ratio of 2.49, indicating ample liquidity.
The research firm highlighted two key agreements that solidify AMD’s position in the AI market. AMD and Oracle recently announced that Oracle Cloud Infrastructure will begin deploying 50,000 AMD MI450 GPUs in the third quarter of 2026, with further expansion expected in 2027 and beyond. With a market capitalization of $354 billion and 27% revenue growth over the past 12 months, AMD has become a leader in the semiconductor industry.
AMD previously partnered with OpenAI, which is expected to deploy 6 gigawatts of AI production capacity using AMD solutions. Wedbush estimates that each gigawatt of capacity could require approximately $20 billion in AMD products, with potential revenue “expected to significantly exceed” its previous expectations.
Based on these developments, Wedbush has significantly raised its AMD forecast. While recent adjustments to the third and fourth quarters of 2025 were modest, the firm now expects AMD’s AI-related revenue to reach approximately $20 billion in 2027, driven by “delivering a significant portion of the 1 gigawatt of capacity to OpenAI.”
The new $270 price target is based on Wedbush’s fiscal 2027 earnings per share forecast of $9 plus a price-to-earnings ratio of approximately 30 times net cash. Wedbush believes this multiple is reasonable given AMD’s “likely revenue trajectory over the next few years.” Currently, AMD’s price-to-earnings ratio is 133, reflecting its high growth expectations. Want deeper insights? InvestingPro offers over 17 exclusive AMD pro tips and comprehensive financial analysis to help investors make more informed decisions.
In other recent news, Advanced Micro Devices, Inc. (AMD) has made several significant announcements. The company unveiled its Helios open rack-scale AI platform at the Open Compute Project Global Summit, designed to support next-generation AI workloads with its Instinct GPUs, EPYC CPUs, and Pensando networking technologies. Additionally, AMD and Oracle announced plans to deploy an AI supercluster powered by 50,000 AMD Instinct MI450 Series GPUs in 2026, further expanding their partnership. This supercluster will utilize AMD’s Helios rack design, incorporating next-generation EPYC processors and Pensando networking technology.
In analyst updates, Mizuho raised its price target for AMD to $275 from $205, maintaining an Outperform rating, following AMD’s deal with OpenAI. Moody’s Ratings upgraded AMD’s and Xilinx’s senior unsecured ratings to A1, citing strong multi-year revenue and earnings growth prospects due to increased data center GPU demand from the OpenAI partnership. Separately, Wolfe Research upgraded Monolithic Power Systems’ stock rating to Outperform, setting a price target of $1,200, based on a conservative path to earnings growth. These developments highlight the ongoing strategic and financial advancements within AMD and its industry partners.