-- Advanced Micro Devices (AMD) is positioned to beat expectations and guide higher on near-term outlook in its Q1 financial report, Wedbush Securities said in a Monday note.
The company is scheduled to report its Q1 financial results on Tuesday.
The investment firm said the company is positioned to exceed its Q1 forecast due to a combination of server CPU demand strength and a more robust-than-expected PC supply chain. Advanced Micro Devices' server CPU demand growth appears "robust," driven by agentic AI, and could also support margins as the higher-margin segment grows as a share of the mix.
Continued strength in server compute demand could provide a buffer if GPU and AI revenue ramps more slowly than expected, according to the note.
Wedbush said it sees an upside to AMD's server CPU numbers and is more confident overall in the company's growth.
The firm has an outperform rating on the stock and increased its price target to $400 from $290.
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