Wells Fargo has raised its price target for Advanced Micro Devices, Inc (AMD) from $505 to $615. The reevaluation comes after the financial institution increased its server CPU (Central Processing Unit) revenue estimates for AMD. Wells Fargo anticipates AMD to rake in $16.0 billion in 2026, $20.5 billion in 2027, and $25.0 billion in 2028 from its CPU business. However, the financial institution made no changes to AMD’s GPU (Graphics Processing Unit) revenue estimations, holding it at $15.6 billion for 2026, $40.6 billion for 2027, and $63.0 billion for 2028. Let’s discuss is AMD can deliver on its bullish stock price target.
AMD’s CPU Dominance To Change The Game?
Well Fargo is not the only one to have revised its stock price target for AMD. Cantor Fitzgerald’s CJ Muse raised AMD’s target from $500 to $700. Not just that, Bank of America also recently included AMD in its list of eight companies that would dominate the next decade.
AMD is expected to make big gains after the advent of agentic AI. Agentic AI platforms rely more on CPU power, than the current GPU-centric AI models. Even Intel CEO Lip-Bu Tan reiterated a similar sentiment. AMD is unique given that it caters to both CPU and GPU needs. This given the company an added advantage when compared to other industry heavyweights, such as Nvidia (NVDA), Intel (INTC), etc.
Also Read: Ray Dalio Says AI Bubble To Face $2 Trillion “Reality Check”
While many have expressed concern about a potential AI bubble, companies like AMD may just be safe from such a situation. The current market is vastly different from that of the dot com bubble in the 90s. Today, companies are delivering real products while registering real profit. Most importantly, the demand for AI platforms from the public is very real as well. AMD might just come out on top when CPU-centric AI platforms take hold.