Advanced Micro Devices (AMD) Stock: Diverging Analyst Perspectives Before Q1 Earnings

Key Takeaways

Table of Contents

Wells Fargo reaffirmed its Overweight stance on AMD, maintaining a $345 price objective and featuring the stock on its Q2 Tactical Ideas List
UBS maintained its Buy recommendation with a $310 price objective, highlighting 2027 revenue projections and prospects for a third major AI infrastructure agreement
Citi maintained its Neutral position while reducing its price objective from $260 to $248, implementing a revised sum-of-the-parts valuation approach
AMD captured 41.3% of server CPU revenue in Q4 2025, climbing from 39% in the previous quarter
Citi modestly increased its 2026 earnings per share projection to $6.38, attributing the change to robust CPU demand linked to agentic AI applications

Advanced Micro Devices finds itself at the center of diverging Wall Street perspectives as it approaches its first-quarter earnings announcement.

Advanced Micro Devices, Inc., AMD

On April 1, Wells Fargo reaffirmed its Overweight recommendation while holding firm on its $345 price objective, simultaneously adding AMD to its second-quarter Tactical Ideas List. The financial institution pointed to promising conditions entering the Q1 earnings period, underpinned by robust demand for EPYC server processors and fresh announcements regarding gigawatt-scale AI GPU initiatives.

Wells Fargo also identified AMD’s scheduled Accelerating AI event in July as a potentially significant positive driver for share performance.

One day later on April 2, UBS reinforced the optimistic perspective, confirming its Buy rating alongside a $310 price objective. UBS expressed confidence in AMD’s revenue trajectory through 2027 and emphasized the potential for securing a third gigawatt-scale AI infrastructure partnership, with Microsoft identified as the most probable partner.

UBS emphasized that MI450 deliveries under the OpenAI agreement in 2026, combined with subsequent Meta shipments, position AMD as an attractive investment opportunity for the latter half of this year.

Citi Reduces Price Objective, Maintains Neutral Stance

Citi presented a contrasting narrative. The firm’s analysts reduced their price objective to $248 from $260, transitioning to a sum-of-the-parts methodology that evaluates AMD’s CPU and GPU operations independently.

Despite lowering the target, Citi marginally raised its 2026 EPS forecast to $6.38 from $6.34, pointing to enhanced CPU revenue driven by agentic AI demand.

Citi’s analysts observed that both AMD and Intel have communicated pricing increases to customers, with implementations beginning in March and April. They view this development as a potential positive factor approaching the earnings release.

AMD’s server CPU market position continues its upward trajectory. During Q4 2025, AMD secured 41.3% of server CPU revenue share, advancing from 39% in the preceding quarter. Intel’s corresponding share has declined to 58.7%, down sharply from 89.2% in early 2021.

Semiconductor Industry Landscape

Citi anticipates varied performance across the semiconductor industry during earnings season. Data center chip manufacturers maintain the strongest positioning, with Citi projecting 69% capital expenditure expansion from the five largest U.S. cloud infrastructure providers in 2026.

The firm maintained Broadcom, Nvidia, Texas Instruments, and Monolithic Power Systems as its preferred selections for the current period. AMD and Analog Devices were designated as upside catalyst opportunities rather than primary holdings.

Citi projects the overall data center semiconductor addressable market will reach $731 billion by 2028.

AMD maintains confidence that its client business can expand through market share capture, with continued emphasis on the premium segment, despite expectations that the second half of 2026 will fall below typical seasonal patterns.

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