Advanced Micro Devices, Inc.

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Advanced Micro Devices, Inc. stock analysis AMD overview
Bullish +72

Wall Street analyst sets AMD stock price target for 12 months

📈 Wells Fargo analyst Aaron Rakers raised AMD's 12-month price target to $615 from $505.

⭐ Analyst maintains 'Overweight' rating citing stronger-than-expected demand and pricing power in EPYC server CPUs.

💰 EPS estimates for 2027 and 2028 were raised to $13.40 and $18.75 respectively.

🚀 Successful production ramp of 6th Gen 2nm EPYC Venice CPUs began in late May 2026.

📊 Server CPU revenue projected to reach $25.0 billion by calendar year 2028.

🤖 Sustained strength noted in Data Center GPU revenue streams.

⚔️ Analyst acknowledges competition from Arm Holdings and NVIDIA Corp but remains bullish.

📈 AMD stock has rallied over 153% year-to-date, trading near $565.51.

🎯 New price target implies roughly 23.8% upside for AMD over the next twelve months.

🔮 Analyst highlights expanding lead in high-core-count server CPUs and AI infrastructure tailwinds.

Bullish Signals
  • Wells Fargo analyst raised AMD's 12-month price target to $615, a significant increase from the previous $505 target.
  • Analyst increased EPS estimates for 2027 and 2028 to $13.40 and $18.75 respectively, projecting earnings exceeding $20 per share by 2028.
  • AMD's EPYC server CPU business is showing stronger-than-expected demand and pricing power according to the analyst.
  • The successful production ramp of the 6th Gen 2nm EPYC Venice server CPUs starting in late May 2026 supports future revenue growth.
  • Server CPU revenue is projected to reach $25.0 billion in 2028, representing a 22% year-over-year increase.
  • Sustained strength in Data Center GPU revenue provides additional support for the company's financial outlook.
  • AMD stock has rallied over 153% year-to-date, indicating strong market confidence and investor sentiment.
  • The analyst cites an expanding competitive lead in high-core-count server CPUs as a key strategic advantage.
Full Analysis
Wall Street analyst Aaron Rakers of Wells Fargo & Co. raised his 12-month price target for Advanced Micro Devices (AMD) to $615, up from $505, maintaining an 'Overweight' rating. This bullish adjustment was driven by stronger-than-expected demand and pricing power in AMD's EPYC server CPU business, alongside sustained strength in Data Center GPU revenue. Rakers increased his long-term earnings per share (EPS) estimates for 2027 and 2028 to $13.40 and $18.75 respectively, expressing confidence that AMD will exceed $20 EPS by the end of 2028. The analyst specifically highlighted the successful production ramp of the 6th Gen 2nm EPYC Venice server CPUs, which began in late May 2026, as a key driver for future growth. Looking ahead, Rakers projects AMD's server CPU revenue to reach $25.0 billion in calendar year 2028, representing a 22% year-over-year increase. Despite acknowledging rising competition from Arm Holdings and NVIDIA Corp., the analyst remains optimistic about AMD's expanding competitive lead in high-core-count server CPUs and the long-term tailwinds provided by AI infrastructure buildout. AMD stock has rallied over 153% year-to-date, trading at approximately $565.51 as of press time. Rakers' new target implies a potential rally of roughly 23.8% for AMD stock over the next twelve months from its current level, reflecting strong investor sentiment and analyst confidence in the company's strategic positioning.