--- title: "AMD may become the biggest winner in the next round of AI competition, Wolfe Research is optimistic about its profit explosion" type: "News" locale: "en" url: "https://longbridge.com/en/news/288087628.md" description: "Wolfe Research raised AMD's target price to $450, optimistic about its potential to become a winner in the AI competition. Driven by strong performance in server CPUs and GPUs, AMD's revenue exceeded expectations, with projected revenue reaching $80 billion in fiscal year 2027. With the rise of Agentic AI and growing demand for inference, AMD is achieving explosive growth in its data center business through its \"CPU+GPU\" dual-engine strategy and has formed strategic partnerships with Meta, OpenAI, and others" datetime: "2026-05-29T14:50:44.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/288087628.md) - [en](https://longbridge.com/en/news/288087628.md) - [zh-HK](https://longbridge.com/zh-HK/news/288087628.md) --- # AMD may become the biggest winner in the next round of AI competition, Wolfe Research is optimistic about its profit explosion As investment in AI infrastructure shifts from training acceleration to inference and application, Wall Street firm Wolfe Research believes that AMD is poised to be the biggest winner in the next wave of AI, with a surge in its server CPU business driving significant profit growth. Recently, Wolfe Research analysts raised AMD's target price from $340 to $450, maintaining an "outperform" rating. The firm noted that AMD's revenue and earnings per share for the first and second quarters exceeded market expectations, primarily driven by the continued strong performance of server CPUs and GPUs. Wolfe's forecast for the fiscal year 2027 indicates that AMD's revenue will reach $80 billion, with earnings per share of $14, taking into account the further strengthening of the server CPU business and growth in performance-enhancing hardware. AMD is undergoing a complete transformation from a chip manufacturer to a "computing power arms dealer" in the AI era. In the first fiscal quarter of 2026, AMD achieved $10.25 billion in revenue, with the data center business reaching $5.775 billion, a year-on-year increase of 57%, setting a new quarterly record. More critically, with the rise of "Agentic AI," computing architecture is shifting from traditional "one head four cards" or "one head eight cards" to an almost 1:1 CPU-GPU ratio. AMD's management expects server CPU revenue to grow by more than 70% year-on-year in the next quarter and has significantly raised its total potential market target for server CPUs from $60 billion to $120 billion by 2030. In the AI GPU sector, AMD's MI450 series and the Helios rack-mounted systems equipped with this chip are expected to enter mass production in the second half of 2026. The company has established multi-gigawatt strategic partnerships with Meta and OpenAI, with Meta planning to deploy up to 6 gigawatts of AMD Instinct GPUs, while OpenAI collaborates with AMD to develop the MI450 chip. AWS has also recently confirmed itself as a new customer for the MI350 series, marking another key breakthrough for AMD among hyperscale cloud providers. Analysts believe that as the share of inference demand in total AI capital expenditure rises to two-thirds, AMD, with its "CPU+GPU" dual-engine strategy, is expected to enter a performance explosion period between 2026 and 2027 ### Related Stocks - [AMD.US](https://longbridge.com/en/quote/AMD.US.md) - [OpenAI.NA](https://longbridge.com/en/quote/OpenAI.NA.md) - [META.US](https://longbridge.com/en/quote/META.US.md) - [FBL.US](https://longbridge.com/en/quote/FBL.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [SOXQ.US](https://longbridge.com/en/quote/SOXQ.US.md) - [FDN.US](https://longbridge.com/en/quote/FDN.US.md) - [AMUU.US](https://longbridge.com/en/quote/AMUU.US.md) - [DAT.US](https://longbridge.com/en/quote/DAT.US.md) - [METW.US](https://longbridge.com/en/quote/METW.US.md) - [METU.US](https://longbridge.com/en/quote/METU.US.md) - [VGT.US](https://longbridge.com/en/quote/VGT.US.md) - [CLOU.US](https://longbridge.com/en/quote/CLOU.US.md) - [IGPT.US](https://longbridge.com/en/quote/IGPT.US.md) - [AMDD.US](https://longbridge.com/en/quote/AMDD.US.md) - [DTCR.US](https://longbridge.com/en/quote/DTCR.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [XSW.US](https://longbridge.com/en/quote/XSW.US.md) - [METD.US](https://longbridge.com/en/quote/METD.US.md) - [IGV.US](https://longbridge.com/en/quote/IGV.US.md) - [AMDL.US](https://longbridge.com/en/quote/AMDL.US.md) - [XDAT.US](https://longbridge.com/en/quote/XDAT.US.md) - [RSPT.US](https://longbridge.com/en/quote/RSPT.US.md) - [IDGT.US](https://longbridge.com/en/quote/IDGT.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) ## Related News & Research - [The era of free internet is over.](https://longbridge.com/en/news/288028907.md) - [Meta to start testing AI subscription services, with cheapest plan at $7.99 a month](https://longbridge.com/en/news/287813695.md) - [Meta Platforms Is Testing AI Chatbot Subscriptions. 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