Key Takeaways
- Wells Fargo maintains Overweight designation on AMD stock with $345 price objective, including it in Q2 Tactical Ideas portfolio
- UBS maintains Buy recommendation at $310 target, emphasizing 2027 revenue projections and potential third gigawatt-level AI partnership
- Citi maintains Neutral stance while reducing price objective to $248 from $260, implementing revised sum-of-the-parts valuation methodology
- AMD’s data center CPU revenue market share reached 41.3% in Q4 2025, advancing from 39% in the previous quarter
- Citi modestly increases 2026 earnings per share forecast to $6.38, driven by enhanced CPU demand related to agentic AI applications
Advanced Micro Devices finds itself at the intersection of optimistic and reserved Wall Street perspectives as the chipmaker approaches its first-quarter earnings announcement.
Advanced Micro Devices, Inc., AMD
Wells Fargo reaffirmed its Overweight designation and $345 price objective on April 1, adding AMD to its second-quarter Tactical Ideas portfolio. The financial institution highlighted an attractive positioning ahead of Q1 financial results, supported by robust EPYC server CPU momentum and recent announcements of gigawatt-scale AI GPU partnerships.
The firm also identified AMD’s scheduled Accelerating AI event in July as a potentially favorable catalyst that could drive stock performance.
One day later on April 2, UBS reinforced the optimistic perspective, reaffirming a Buy designation with a $310 price objective. UBS expressed conviction in AMD’s 2027 revenue trajectory and emphasized the likelihood of securing a third gigawatt-scale AI partnership, with Microsoft considered the leading contender.
UBS emphasized that MI450 deliveries under the OpenAI partnership 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 Position
Citi presented a contrasting narrative. 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 reduced target, Citi marginally elevated its 2026 EPS projection to $6.38 from $6.34, attributing the increase to enhanced CPU revenue connected to agentic AI market expansion.
Citi’s analysis indicated that AMD and Intel have both communicated price increase intentions to customers, with implementations beginning in March and April. The firm views this as a potentially beneficial factor ahead of earnings disclosure.
AMD’s server CPU market position continues its upward trajectory. During Q4 2025, AMD captured 41.3% revenue share in the server CPU segment, representing growth 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 season throughout the semiconductor industry. Data center chip manufacturers maintain the strongest positioning, with Citi projecting 69% capital expenditure expansion from the five largest U.S. cloud service providers in 2026.
The institution maintained 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 expand to $731 billion by 2028.
AMD maintains confidence that its client segment can achieve expansion through market share acquisition, maintaining emphasis on the premium category, despite expectations that the second half of 2026 will fall below typical seasonal patterns.
