Wells Fargo reiterates Overweight on AMD, pointing to demand strength for EPYC CPUs

Advanced Micro Devices is getting continued support from Wall Street after Wells Fargo reiterated an Overweight rating on the semiconductor maker and raised its price outlook earlier this week, according to commentary summarized by Yahoo Finance.

The updated target was increased from $505 to $615 and Wells Fargo’s argument focused on demand for EPYC server central processing unit (CPU) processors. EPYC is AMD’s line of data-center server chips used by cloud and enterprise customers, and the analyst view is that AI-driven buildouts are keeping orders resilient for this part of the business.

Wells Fargo also pointed to pricing gains, which it said, alongside the strength in EPYC demand, supports its positive view of AMD’s near-term performance. In addition, the note maintained confidence in data center graphics processing units (GPUs), with revenue projections for the segment expected to stay above what many analysts are forecasting.

The firm further adjusted its earnings per share (EPS) estimates upward, according to the report. Wells Fargo’s changes lifted projected EPS to $13.40 for 2027 and $18.75 for 2028, the summary said, reflecting a longer runway for AI-related spending and improved profit expectations.

The bullish framing is not limited to Wells Fargo. The same report noted that Cantor Fitzgerald earlier increased its AMD target price from $500 to $700 while keeping an Overweight rating, attributing the broader setup to a “generational” AI infrastructure cycle across semiconductors.

Cantor’s perspective, as described, is that supply chain bottlenecks could prolong the current industry buildout, implying that revenue growth for the sector may extend beyond what the market initially expected. The summary projected AI infrastructure revenues could reach about $3 trillion by 2029, with a possibility of surpassing $3.5 trillion by 2030.

AMD’s investment narrative remains closely tied to how fast data-center customers expand AI and high-performance computing capacity, because that spending flow tends to drive demand for both server CPUs and accelerators. Wells Fargo’s remarks, as reported, place particular emphasis on EPYC momentum and on the likelihood that AMD’s data center GPU revenue will remain resilient relative to consensus.

Still, the analyst summaries do not provide additional operational detail from AMD itself, such as specific customer design wins, shipment levels, or formal guidance changes. The report also does not quantify how much of the upside is tied to pricing versus volume, beyond describing both as supportive factors.