AMD Stock: What Wells Fargo, UBS, and Citi Are Saying Ahead of Q1 Results

TLDR

• Wells Fargo kept its Overweight rating on AMD with a $345 price target and added it to its Q2 Tactical Ideas List
• UBS reiterated a Buy rating with a $310 target, pointing to 2027 revenue growth and a potential third gigawatt-scale AI deal
• Citi held a Neutral rating but cut its price target to $248 from $260, using a new sum-of-the-parts framework
• AMD’s server CPU market share hit 41.3% revenue share in Q4 2025, up from 39% the prior quarter
• Citi raised its 2026 EPS estimate slightly to $6.38, citing stronger CPU demand tied to agentic AI

AMD is sitting at a crossroads of bullish and cautious analyst sentiment heading into its first-quarter earnings.

Advanced Micro Devices, Inc., AMD

Wells Fargo maintained its Overweight rating and $345 price target on April 1, placing AMD on its second-quarter Tactical Ideas List. The firm cited a favorable setup heading into Q1 results, driven by strong EPYC server CPU demand and new gigawatt-scale AI GPU announcements.

Wells Fargo also flagged AMD’s upcoming Accelerating AI event in July as a potential positive catalyst for the stock.

On April 2, UBS added its voice to the bull case, reiterating a Buy rating with a $310 price target. UBS pointed to confidence in AMD’s 2027 revenue growth and highlighted the possibility of a third gigawatt-scale AI deal, with Microsoft seen as the most likely candidate.

UBS noted that MI450 shipments under the OpenAI deal in 2026, followed by Meta deliveries, make AMD a compelling investment case for the second half of this year.

Citi Cuts Target, Stays Neutral

Citi told a different story. Analysts at the firm lowered their price target to $248 from $260, shifting to a sum-of-the-parts valuation that breaks out AMD’s CPU and GPU businesses separately.

Despite the target cut, Citi nudged its 2026 EPS estimate up slightly to $6.38 from $6.34, citing stronger CPU sales tied to agentic AI demand.

Citi analysts noted that AMD and Intel have both told customers they plan to raise CPU prices, with increases starting in March and April. They see that as a potential tailwind heading into earnings.

AMD’s server CPU market share continues to climb. In Q4 2025, AMD held 41.3% revenue share in the server CPU market, up from 39% the prior quarter. Intel’s share, by contrast, has fallen to 58.7% from 89.2% back in early 2021.

Broader Chip Sector Picture

Citi expects a mixed earnings season across the semiconductor sector. Data center chipmakers remain the strongest positioned, with Citi modeling 69% capital expenditure growth from the five largest U.S. cloud providers in 2026.

The firm kept Broadcom, Nvidia, Texas Instruments, and Monolithic Power Systems as its top picks for the period. AMD and Analog Devices were flagged as upside catalyst watches rather than core positions.

Citi models the total data center semiconductor addressable market reaching $731 billion by 2028.

AMD remains confident its client business can grow through market share gains, with a continued focus on the premium segment, even as it expects the second half of 2026 to be below seasonal norms.

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