Key Takeaways
- Wells Fargo sustained its Overweight stance on AMD stock with a $345 target and included it on its Q2 Tactical Ideas List
- UBS maintained its Buy recommendation at $310, highlighting 2027 revenue projections and a possible third gigawatt-scale artificial intelligence partnership
- Citi maintained its Neutral position while reducing its target to $248 from $260, implementing a new sum-of-the-parts valuation approach
- AMD’s server CPU revenue market share reached 41.3% in Q4 2025, climbing from 39% in the previous quarter
- Citi increased its 2026 earnings per share forecast marginally 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 opinions as it approaches its first-quarter financial disclosure.
Advanced Micro Devices, Inc., AMD
On April 1, Wells Fargo affirmed its Overweight designation and $345 valuation target, including AMD on its second-quarter Tactical Ideas List. The financial institution highlighted a promising outlook entering Q1 earnings, supported by robust EPYC server CPU momentum and fresh gigawatt-scale AI GPU partnerships.
The bank also identified AMD’s scheduled Accelerating AI conference in July as a prospective positive driver for shares.
A day later on April 2, UBS reinforced the bullish perspective, maintaining its Buy rating alongside a $310 valuation. UBS expressed optimism regarding AMD’s 2027 revenue trajectory and emphasized the probability of securing a third gigawatt-scale AI contract, with Microsoft identified as the leading contender.
According to UBS, MI450 deliveries under 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 Valuation, Maintains Neutral Stance
Citi presented a contrasting perspective. The firm’s analysts decreased their price objective to $248 from $260, adopting a sum-of-the-parts methodology that evaluates AMD’s CPU and GPU divisions independently.
While reducing the target, Citi marginally elevated its 2026 EPS projection to $6.38 from $6.34, attributing the adjustment to improved CPU revenue linked to agentic AI requirements.
According to Citi analysts, both AMD and Intel have communicated plans to customers regarding CPU price increases, with implementation beginning in March and April. This development represents a possible positive factor entering the earnings period.
AMD’s server CPU market position continues its upward trajectory. During Q4 2025, AMD captured 41.3% revenue share within the server CPU segment, advancing from 39% in the preceding quarter. Intel’s portion has declined to 58.7% from 89.2% recorded in early 2021.
Semiconductor Industry Overview
Citi anticipates a varied earnings landscape throughout the semiconductor industry. Data center chip manufacturers remain most favorably positioned, with Citi projecting 69% capital expenditure expansion from the five largest 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 monitors rather than primary holdings.
Citi forecasts the complete data center semiconductor addressable market achieving $731 billion by 2028.
AMD maintains confidence that its client division can expand through market share acquisition, with ongoing emphasis on the premium category, despite anticipating the second half of 2026 will fall below seasonal patterns.
