Advanced Micro Devices (AMD) raised its estimates for the total addressable markets of graphics processing units and central processing units, highlighted GPU benchmarks, and discussed its product roadmap at its Advancing AI event, RBC Capital Markets said Friday.

Regarding the recently announced Anthropic partnership, management expects the initial 1 gigawatt ramp mostly in 2027, representing $10 billion to $20 billion in incremental revenue, according to the note.

RBC raised its AI GPU revenue by $10 billion each in calendar year 2027 and 2028 to reflect the Anthropic partnership, though the increase could be conservative depending on the speed of the ramp. The brokerage lifted its 2027 EPS estimate to $14.96 from $11.98 and its 2028 estimate to $20.71 from $17.28, the note added.

Advanced Micro Devices expects to begin shipping Helios racks to Microsoft (MSFT) in H2. Helios is now in production, with shipments set to begin in fiscal Q3 and ramping up through fiscal Q4 and H1 2027, the brokerage said.

RBC kept a sector perform rating on Advanced Micro Devices with a price target of $540.

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