Key Takeaways
- Wells Fargo maintains Overweight stance on AMD stock with $345 price objective, adding the chipmaker to its Q2 Tactical Ideas List
- UBS reaffirms Buy recommendation at $310, highlighting 2027 revenue projections and potential third major AI partnership
- Citi maintains Neutral position while reducing price objective to $248 from $260, implementing a new sum-of-the-parts valuation approach
- The company’s server CPU revenue share reached 41.3% in Q4 2025, increasing from 39% in the previous quarter
- Citi modestly increases 2026 earnings per share projection to $6.38, attributing the boost to stronger CPU sales driven by agentic AI applications
Advanced Micro Devices finds itself amid contrasting analyst perspectives as the company prepares to report first-quarter financial results.
Advanced Micro Devices, Inc., AMD
Wells Fargo reaffirmed its Overweight recommendation and $345 price objective on April 1, designating AMD as part of its second-quarter Tactical Ideas List. The investment firm highlighted a constructive outlook entering Q1 earnings, supported by robust EPYC server CPU momentum and recent announcements of gigawatt-scale AI GPU initiatives.
The firm also identified AMD’s scheduled Accelerating AI event in July as a prospective positive driver for share performance.
On April 2, UBS reinforced the bullish narrative, maintaining its Buy rating alongside a $310 price target. UBS expressed conviction in AMD’s revenue expansion through 2027 and emphasized the likelihood of securing a third gigawatt-scale AI partnership, with Microsoft appearing as the most probable partner.
UBS observed that MI450 deliveries under the OpenAI agreement in 2026, combined with subsequent Meta shipments, position AMD as an attractive investment opportunity for the latter half of this year.
Citi Reduces Price Objective, Maintains Neutral Stance
Citi presented a contrasting perspective. The firm’s analysts decreased their price objective to $248 from $260, transitioning to a sum-of-the-parts methodology that evaluates AMD’s CPU and GPU operations independently.
Notwithstanding the price target reduction, Citi slightly raised its 2026 EPS forecast to $6.38 from $6.34, pointing to enhanced CPU demand associated with agentic AI applications.
Citi analysts observed that both AMD and Intel have communicated planned CPU price increases to customers, with implementations beginning in March and April. They view this pricing power as a potential positive factor entering the earnings period.
AMD’s server CPU market position continues advancing. During Q4 2025, AMD captured 41.3% revenue share in the server CPU segment, rising from 39% in the preceding quarter. Intel’s share has declined to 58.7% from 89.2% in early 2021.
Semiconductor Industry Landscape
Citi anticipates varied earnings performance across the semiconductor industry. Data center chip manufacturers remain the most favorably positioned, with Citi projecting 69% capital expenditure expansion from the five largest U.S. cloud providers in 2026.
The firm retained Broadcom, Nvidia, Texas Instruments, and Monolithic Power Systems as its preferred selections for the period. AMD and Analog Devices were identified as upside catalyst opportunities rather than primary holdings.
Citi projects the total data center semiconductor addressable market will reach $731 billion by 2028.
AMD expresses confidence that its client business can expand through market share acquisition, maintaining emphasis on the premium tier, despite anticipating below-seasonal performance in the second half of 2026.
