Key Takeaways
- Wells Fargo maintains Overweight stance on AMD stock with $345 price target, adding the chipmaker to its Q2 Tactical Ideas List
- UBS sustains Buy recommendation at $310, highlighting 2027 revenue projections and potential third gigawatt-scale artificial intelligence agreement
- Citi maintains Neutral position while reducing price target from $260 to $248, implementing new sum-of-the-parts valuation methodology
- The company’s server CPU revenue share reached 41.3% in Q4 2025, rising from 39% in the previous quarter
- Citi increases 2026 earnings per share projection to $6.38, attributing the boost to robust CPU sales driven by agentic AI applications
Advanced Micro Devices finds itself amid diverging Wall Street perspectives as its first-quarter financial report approaches.
Advanced Micro Devices, Inc., AMD
Wells Fargo reaffirmed its Overweight recommendation and $345 valuation on April 1, designating AMD for its second-quarter Tactical Ideas List. The financial institution highlighted an advantageous position entering Q1 results, propelled by robust EPYC server CPU momentum and fresh gigawatt-scale AI GPU partnership announcements.
The firm additionally identified AMD’s forthcoming Accelerating AI conference scheduled for July as a possible upside trigger for shares.
On April 2, UBS reinforced the optimistic perspective, maintaining its Buy rating alongside a $310 valuation. UBS emphasized conviction in AMD’s 2027 revenue trajectory and underscored the likelihood of securing a third gigawatt-scale AI partnership, with Microsoft emerging as the most probable partner.
UBS observed that MI450 deliveries under the OpenAI arrangement in 2026, succeeded by Meta shipments, position AMD as an attractive investment opportunity for the latter portion of this year.
Citi Reduces Valuation, Maintains Neutral Stance
Citi presented an alternative narrative. The firm’s analysts decreased their valuation to $248 from $260, transitioning to a sum-of-the-parts methodology that evaluates AMD’s CPU and GPU operations independently.
Notwithstanding the target reduction, Citi marginally elevated its 2026 EPS projection to $6.38 from $6.34, crediting enhanced CPU revenue connected to agentic AI adoption.
Citi analysts observed that both AMD and Intel have communicated price increase intentions to customers, with adjustments implemented beginning in March and April. They view this development as a possible favorable factor approaching earnings.
The chipmaker’s server CPU market position continues advancing. During Q4 2025, AMD captured 41.3% revenue share in the server CPU segment, advancing from 39% the preceding quarter. Intel’s portion, conversely, has declined to 58.7% from 89.2% 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 firm retained Broadcom, Nvidia, Texas Instruments, and Monolithic Power Systems as its preferred selections for the timeframe. AMD and Analog Devices were designated as potential upside catalyst opportunities rather than primary holdings.
Citi projects the total data center semiconductor addressable market achieving $731 billion by 2028.
AMD maintains confidence its client division can expand through market share acquisition, sustaining concentration on the premium category, despite anticipating the second half of 2026 to fall below typical seasonal patterns.
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