AMD Stock: Wells Fargo Sees 68% Server Revenue Growth in 2026

TLDR

• Wells Fargo raised its AMD price target to $615 from $505, keeping an Overweight rating.
• AMD stock closed Monday up 3.4% at $539.49, with the new target implying 14% upside.
• Analyst Aaron Rakers expects AMD server CPU revenue to grow 68% to $16 billion in 2026.
• Wells Fargo sees data center GPU revenue reaching $63 billion by 2028.
• AMD could top $20 in annual earnings per share sooner than the company previously projected.

AMD (AMD) stock closed Monday at $539.49, up 3.4%, and ticked another 0.5% higher in premarket trading Tuesday. The move came after Wells Fargo raised its price target on the chipmaker to $615 from $505.

Advanced Micro Devices, Inc., AMD

That new target implies roughly 14% upside from Monday’s close. Wells Fargo analyst Aaron Rakers kept his Overweight rating in place.

Rakers is no rookie when it comes to chip calls. He ranks #8 out of more than 12,000 analysts tracked by TipRanks, with a 73% success rate.

His bullish case rests on one thing: agentic AI is eating compute, and AMD’s CPUs are along for the ride.

Server Chips Are Doing the Heavy Lifting

Rakers expects AMD’s server CPU business to bring in $16 billion in 2026. That’s a 68% jump from where it stood before.

He doesn’t see things slowing down either. The forecast calls for $20.5 billion in 2027 and $25 billion in 2028.

Cloud providers keep expanding AI infrastructure. Enterprises are also modernizing their data centers, and that’s pushing more customers toward AMD’s high-core-count EPYC chips.

Rakers also pointed to pricing strength. As buyers opt for more powerful EPYC variants, AMD pockets better margins on each sale.

GPUs Add to the Earnings Story

It’s not just CPUs carrying the load. Rakers kept his AI GPU forecasts above the Street’s numbers too.

He’s projecting $15.6 billion in data center GPU revenue for 2026. That climbs to $40.6 billion in 2027 and $63 billion in 2028.

Combined with the CPU growth, this pushed Rakers to lift his earnings estimates. He now sees $13.40 per share in 2027 and $18.75 in 2028.

Those numbers give him confidence AMD could clear $20 in annual earnings per share earlier than the company itself has guided.

There’s also a product cycle angle here. AMD’s next-generation 2nm EPYC Venice chips entered production in late May.

Volume shipments are expected in the second half of 2026. AMD has said customer validation and ramp activity for Venice is running ahead of any prior EPYC generation.

Not every analyst is as enthusiastic, though. The broader Wall Street consensus rating on AMD is Strong Buy, built on 28 Buy ratings and seven Hold ratings over the past three months.

That consensus carries an average price target of $507.18. That figure actually sits below AMD’s current trading price, implying close to 6% downside rather than upside.

So the Street is split on how far this run can go from here. Wells Fargo just staked out one of the more bullish positions on the board.

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