Wells Fargo raises its target for AMD to $615, citing stronger server CPU demand and GPU upside

Wells Fargo has raised its price target on Advanced Micro Devices, setting a new target of $615 per share versus $505 before, while maintaining an Overweight rating for AMD. The change reflects a more favorable view of how AMD’s server chips are performing, and of potential upside in its data center graphics business, according to the coverage of the analyst note by Yahoo Finance and other outlets.

In the revised outlook, Wells Fargo cited strength in demand for AMD’s EPYC processors, which are the company’s server central processing unit (CPU) products used in data centers and cloud infrastructure. The firm also pointed to pricing upside as a reason it believes the company can outperform prior expectations, which, in turn, supported the higher target.

The note also adjusted specific expectations for AMD’s data center GPU revenue. Data center GPUs are the graphics processing units AMD sells for AI training and inference workloads and related high-performance computing uses. Wells Fargo said it was keeping its above-consensus data center GPU revenue estimates, with modeled 2027 and 2028 earnings per share (EPS) rising to $13.40 and $18.75, respectively.

The price-target increase and EPS changes come alongside a snapshot of AMD’s recent operating performance used by the reporting outlets to frame the analyst’s confidence. For example, the coverage referenced AMD’s fiscal first-quarter 2026 results, including revenue of $10.3 billion and net income of $1.4 billion. It also referenced gross margin and operating income figures in both GAAP and non-GAAP terms, as well as diluted EPS figures, as context for how the company has been generating earnings.

Wells Fargo’s stance matters for AMD because it indicates continued optimism from at least one large Wall Street institution on the near-to-medium-term path of both its server CPU and data center GPU businesses. AMD has positioned itself as a supplier of end-to-end compute building blocks for datacenters, and server CPUs like EPYC are central to that narrative because they sit in the critical path of enterprise and cloud server spending.

The debate in semiconductors right now is increasingly about which suppliers can translate demand for AI-era computing into sustained revenue growth and margins. In that environment, a thesis that combines stronger server CPU momentum with GPU upside can be a meaningful combination, since it targets multiple product lines rather than betting on a single segment.

Still, the market implications of the upgrade depend on how closely subsequent quarterly results match the assumptions embedded in Wells Fargo’s model, particularly around pricing for EPYC and the trajectory of data center GPU revenue. The public reporting of the analyst view does not provide full detail on the firm’s underlying methodology, and it does not spell out any specific quantitative guidance that AMD itself has issued beyond general performance figures referenced from AMD’s financial results.

For investors and analysts watching AMD next, the key items are the company’s upcoming quarterly earnings updates, along with disclosures that could clarify whether EPYC demand and pricing are continuing to hold up, and whether data center GPU growth is meeting or exceeding the kind of above-street expectations Wells Fargo is maintaining. Updates on customer deployments and overall compute platform momentum would be especially relevant to validate the thesis that supported the $615 target.