Advanced Micro Devices Server CPU Demand Seen Driving Q3 Upside, Wedbush Says

11:23 AM EDT, 10/20/2026 (MT Newswires) -- Advanced Micro Devices' (AMD) server CPU demand is expected to be the most likely source of Q3 upside, while the Helios ramp and 2027 data center outlook remain in focus, Wedbush Securities said in a Tuesday note. The investment firm said it expects AMD to report Q3 results at or above guidance, citing demand for computing power tied to agentic artificial intelligence that continues to exceed supply. Wedbush expects management to reiterate its outlook for data center revenue to more than double in 2027. Higher memory and component costs are expected to weigh on PC demand, while gaming revenue is forecast to decline sequentially, the firm said. Softer consumer demand could allow AMD to shift production toward enterprise shipments, according to the note. AMD will report Q3 financial results on Nov. 3 after the market close. Wedbush Securities reiterated its outperform rating and $600 price target on AMD. Price: 542.41, Change: +4.36, Percent Change: +0.81