Wells Fargo analyst Aaron Rakers has raised his price target for AMD from $505 to $615, citing a robust outlook for server central processing units, not the artificial intelligence accelerators typically in focus.
The revision is based on a projection that AMD will generate $16 billion in server CPU revenue by 2026, climbing to $20.5 billion in 2027 and reaching $25 billion by 2028.
Rakers maintains an Overweight rating on the stock. His new earnings per share estimates are $7.15 for 2026, $13.40 for 2027, and $18.75 for 2028. The $615 target applies a 33x price-to-earnings multiple to the 2028 estimate.
AMD shares have recently hit all-time highs. This upgrade is notable for its focus on the central processing unit business, where AMD's EPYC processors continue to gain market share against Intel's Xeon line.
The analyst's forecast suggests this share gain is accelerating. Intel faces competitive pressure from both AMD and Arm-based server chips from companies like Ampere, as well as from cloud providers developing their own processors.