Key Highlights
- Wells Fargo maintains Overweight stance on AMD shares with $345 target and inclusion on Q2 Tactical Ideas List
- UBS affirms Buy rating at $310, emphasizing 2027 revenue outlook and potential third major AI infrastructure agreement
- Citi maintains Neutral stance while reducing target to $248 from $260, implementing revised sum-of-the-parts valuation method
- Server CPU revenue share for AMD reached 41.3% during Q4 2025, climbing 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 faces a mixture of optimistic and reserved analyst perspectives as the company approaches its first-quarter earnings announcement.
Advanced Micro Devices, Inc., AMD
Wells Fargo reaffirmed its Overweight position with a $345 valuation on April 1, adding AMD to its second-quarter Tactical Ideas List. The banking institution pointed to promising conditions ahead of Q1 results, supported by robust EPYC server CPU momentum and fresh gigawatt-scale AI GPU declarations.
The firm also identified AMD’s scheduled Accelerating AI event in July as a prospective positive driver for share performance.
UBS weighed in on April 2, reinforcing its Buy recommendation with a $310 valuation. The firm expressed optimism regarding AMD’s 2027 revenue trajectory while emphasizing the prospect of securing a third gigawatt-scale AI partnership, with Microsoft emerging as the most probable partner.
According to UBS, MI450 deliveries under the OpenAI agreement scheduled for 2026, combined with subsequent Meta shipments, position AMD as an attractive investment opportunity for the latter half of this year.
Citi Reduces Valuation While Maintaining Neutral Stance
Citi presented an alternative perspective. The firm’s analysts reduced their valuation to $248 from $260, adopting a sum-of-the-parts approach that evaluates AMD’s CPU and GPU operations independently.
While lowering the target, Citi modestly increased its 2026 earnings per share forecast to $6.38 from $6.34, attributing the adjustment to improved CPU sales connected to agentic AI requirements.
Citi’s research team observed that both AMD and Intel have communicated plans to customers regarding CPU price increases, with implementations beginning in March and April. They view this development as a possible favorable factor approaching the earnings release.
Server CPU market share for AMD shows continued expansion. During Q4 2025, AMD captured 41.3% revenue share in the server CPU segment, 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 Overview
Citi anticipates varied performance across the semiconductor industry during earnings season. Data center chip manufacturers hold the strongest positioning, with Citi projecting 69% capital expenditure expansion from the five largest U.S. cloud providers throughout 2026.
The institution maintained Broadcom, Nvidia, Texas Instruments, and Monolithic Power Systems as preferred selections for the period. AMD and Analog Devices received designation as upside catalyst opportunities rather than primary holdings.
Citi projects the complete data center semiconductor addressable market will expand to $731 billion by 2028.
AMD expresses optimism that its client business can expand through market share acquisition, maintaining emphasis on the premium segment, while anticipating the second half of 2026 to fall below typical seasonal patterns.
