Quick Summary
- Wells Fargo maintains Overweight stance on AMD with $345 price objective, adding the stock to Q2 Tactical Ideas List
- UBS confirms Buy recommendation at $310 target, emphasizing 2027 revenue prospects and potential third gigawatt-level AI contract
- Citi maintains Neutral position while reducing price objective to $248 from $260, implementing new sum-of-the-parts valuation approach
- AMD captured 41.3% server CPU revenue share in Q4 2025, expanding from 39% in the previous quarter
- Citi increases 2026 earnings per share projection to $6.38, driven by enhanced CPU demand linked to agentic AI applications
Advanced Micro Devices finds itself at the center of diverging Wall Street opinions as its first-quarter earnings announcement approaches.
Advanced Micro Devices, Inc., AMD
On April 1, Wells Fargo reaffirmed its Overweight designation and $345 price objective, incorporating AMD into its second-quarter Tactical Ideas List. The financial institution highlighted an attractive positioning entering Q1 results, supported by robust EPYC server CPU momentum and fresh gigawatt-scale AI GPU product reveals.
Wells Fargo also identified AMD’s scheduled Accelerating AI event in July as a potentially beneficial catalyst for share performance.
UBS reinforced the optimistic perspective on April 2, maintaining its Buy rating alongside a $310 price objective. The firm expressed conviction in AMD’s 2027 revenue trajectory and emphasized the prospect of securing a third gigawatt-scale AI partnership, with Microsoft identified as the leading contender.
UBS observed that MI450 deliveries pursuant to the OpenAI agreement in 2026, combined with subsequent Meta shipments, position AMD as an attractive investment opportunity for the year’s latter half.
Citi Reduces Outlook, Maintains Neutral Stance
Citi presented a more reserved assessment. The firm’s analysts reduced their price objective to $248 from $260, transitioning to a sum-of-the-parts methodology that separately evaluates AMD’s CPU and GPU operations.
Notwithstanding the target reduction, Citi modestly elevated its 2026 EPS projection to $6.38 from $6.34, attributing the adjustment to improved CPU sales connected to agentic AI requirements.
Citi’s analysts observed that both AMD and Intel have communicated price increase intentions to customers, with implementation beginning in March and April. They view this development as a favorable factor approaching the earnings disclosure.
AMD’s server CPU market presence continues its upward trajectory. During Q4 2025, AMD secured 41.3% revenue share within the server CPU marketplace, advancing from 39% in the preceding quarter. Intel’s corresponding share has declined to 58.7% from 89.2% recorded in early 2021.
Semiconductor Industry Landscape
Citi anticipates a varied earnings cycle throughout the semiconductor industry. Data center chip manufacturers maintain the strongest competitive positioning, with Citi projecting 69% capital expenditure expansion from the five major U.S. cloud service providers in 2026.
The institution retained Broadcom, Nvidia, Texas Instruments, and Monolithic Power Systems as preferred selections for this timeframe. AMD and Analog Devices were designated as upside catalyst candidates rather than primary holdings.
Citi projects the aggregate data center semiconductor addressable market will achieve $731 billion by 2028.
AMD expresses confidence that its client division can expand through market share acquisition, maintaining emphasis on the premium category, despite anticipating the second half of 2026 will underperform typical seasonal patterns.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
