Wells Fargo hikes AMD target to $615 on AI server demand

Wells Fargo raised its price target on Advanced Micro Devices to $615 from $505 and maintained an Overweight rating, citing strong demand for server central processing units driven by artificial intelligence workloads.

The brokerage increased its revenue forecasts for AMD’s server CPU business to $16.0 billion in 2026, $20.5 billion in 2027 and $25.0 billion in 2028. Data-center GPU revenue estimates were left unchanged at $15.6 billion for 2026, $40.6 billion for 2027 and $63.0 billion for 2028. Earnings-per-share projections were lifted to $7.15 in 2026, $13.40 in 2027 and $18.75 in 2028.

Wells Fargo based the new $615 target on a price-to-earnings multiple of 33 times projected 2028 earnings. The firm noted that at the time of the update AMD traded at a price-to-earnings ratio near 179 and that the revised target implies about 14% upside from Monday’s closing price.

The analyst team, led by Aaron Rakers, expects continued momentum in agentic AI workloads to support server CPU sales. Wells Fargo projects server CPU revenue to increase 68% in 2026 and to grow between 22% and 28% in 2027 and 2028.

AMD reported production of its sixth-generation 2nm EPYC Venice server processors began ramping in late May, with volume production expected to continue through the second half of 2026. The company stated more customers are validating and ramping the Venice platform than for any prior EPYC generation.

AMD plans to launch next-generation 2nm EPYC Verano processors in 2027, targeting improvements in AI performance per dollar and per watt. The company has also increased its estimate of the server CPU total addressable market to $120 billion by 2030.

In recent corporate moves, AMD announced the acquisition of MEXT, a developer of AI-driven memory optimization technology aimed at improving performance and lowering total cost of ownership for cloud and enterprise customers. AMD also participated in a Series B funding round for cloud computing startup TensorWave, which closed at a $1.55 billion valuation; the investment is intended to support TensorWave’s infrastructure expansion using AMD hardware and software.

Other brokerages updated their AMD outlooks: Cantor Fitzgerald raised its price target to $700 while keeping an Overweight rating, UBS increased its target to $670, and Wolfe Research reiterated an Outperform rating with a $450 target.