AMD Stock: Insights from Wells Fargo, UBS, and Citi Before Q1 Results

TLDR

• Wells Fargo maintained its Overweight rating on AMD, setting a $345 price target and including the stock in its Q2 Tactical Ideas List.
• UBS reaffirmed a Buy rating and a $310 price target, highlighting expectations for 2027 revenue expansion and the potential for a third gigawatt-scale AI contract.
• Citi maintained a Neutral stance but adjusted its price target downward to $248 from $260, implementing a new sum-of-the-parts valuation model.
• AMD’s revenue share in the server CPU market rose to 41.3% in Q4 2025, an increase from 39% in the previous quarter.
• Citi slightly increased its 2026 EPS forecast to $6.38, pointing to robust CPU demand fueled by agentic AI.

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(SeaPRwire) –   As AMD approaches its first-quarter earnings report, the company faces a mix of optimistic and cautious perspectives from Wall Street analysts.

Advanced Micro Devices, Inc., AMD

On April 1, Wells Fargo kept its Overweight rating and $345 price target, adding AMD to its Tactical Ideas List for the second quarter. The firm noted a positive outlook leading into Q1 results, supported by robust demand for EPYC server CPUs and announcements regarding new gigawatt-scale AI GPUs.

Additionally, Wells Fargo identified AMD’s upcoming Accelerating AI event in July as a potential catalyst for the stock.

UBS expressed a bullish view on April 2, reiterating a Buy rating and a $310 price target. The firm cited confidence in AMD’s revenue growth trajectory for 2027 and suggested that a third gigawatt-scale AI deal could be on the horizon, with Microsoft viewed as the most probable partner.

UBS also highlighted that scheduled MI450 shipments for the OpenAI contract in 2026, followed by deliveries to Meta, position AMD as an attractive investment for the latter half of the year.

Citi Cuts Target, Stays Neutral

Conversely, Citi offered a more reserved outlook. Analysts at the firm reduced their price target from $260 to $248, adopting a sum-of-the-parts valuation that separates AMD’s GPU and CPU segments.

Despite the lower target, Citi marginally raised its 2026 EPS projection to $6.38 from $6.34, attributing the change to increased CPU demand driven by agentic AI.

Citi analysts observed that both AMD and Intel have informed clients of planned CPU price hikes beginning in March and April, which they view as a potential benefit heading into the earnings release.

AMD continues to expand its footprint in the server CPU market. By Q4 2025, the company captured 41.3% of the revenue share, up from 39% in the prior quarter. In comparison, Intel’s share has declined from 89.2% in early 2021 to 58.7%.

Broader Chip Sector Picture

Citi anticipates a varied earnings season for the semiconductor industry. Data center chip manufacturers remain in the best position, with Citi projecting a 69% increase in capital expenditures from the five largest U.S. cloud providers in 2026.

The firm continues to favor Broadcom, Nvidia, Texas Instruments, and Monolithic Power Systems as its top picks, while categorizing AMD and Analog Devices as stocks to watch for upside potential rather than core holdings.

Citi estimates that the total addressable market for data center semiconductors will reach $731 billion by 2028.

AMD maintains confidence that its client business will expand through market share gains, with a continued emphasis on the premium market, even as it anticipates that the second half of 2026 may fall short of seasonal trends.