09:36 AM EDT, 06/13/2025 (MT Newswires) -- Advanced Micro Devices ( AMD ) is likely to see "meaningful" revenue contribution from Saudi Arabia's artificial intelligence company Humain sooner than expected, Wedbush Securities said in a Friday client note highlighting key takeaways from the chipmaker's recent AI conference.

AMD and Humain, which is backed by Saudi Arabia's Public Investment Fund, last month announced an investment of up to $10 billion to deploy 500 megawatts of AI compute capacity over the next five years. The agreement was among a series of deals that Humain signed with other major US companies, including Nvidia (NVDA), Amazon (AMZN) and Alphabet's (GOOG, GOOGL) Google.

During AMD's Advancing AI conference on Thursday, Humain Chief Executive Tareq Amin was present to discuss the company's digital infrastructure targets. The Saudi firm intends to deploy 50 megawatts of capacity by the end of 2025 and add a similar amount of capacity on a quarterly basis, Wedbush said. Humain is also targeting nearly 2 gigawatts of capacity by 2030 and 6 gigawatts by 2034, according to the brokerage.

Humain's objectives could be a "significant contributor" to AMD sales beginning in the second half of this year, compared with previous speculation that revenue could take longer to ramp, Wedbush analyst Matt Bryson wrote in the note.

Microsoft ( MSFT )-backed (MSFT)-OpenAI CEO Sam Altman's appearance at the event appeared to suggest additional revenue streams for AMD, Wedbush said. Altman discussed OpenAI's partnership with AMD on AI infrastructure, the chipmaker said in a Thursday statement.

In May, AMD issued an upbeat fiscal second-quarter revenue outlook at the midpoint on the back of better-than-expected results in the prior three-month period. At the time, the company flagged an estimated revenue hit of $700 million in the ongoing quarter due to the US government's new requirement for a license to export its MI308 chips to China.

Wedbush said there have been some investor concerns surrounding AMD's ability to meet its second-half expectations in part due to the complications surrounding chip exports to China. However, Wedbush's recent checks suggest "generally stronger enterprise demand trends" for AMD, reinforcing the brokerage's belief in the chipmaker's ability to meet or exceed targets "tied to likely 2025 upside in server CPU shipments."

Wedbush has an outperform rating on AMD's stock with a 12-month price target of $120.

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