Wells Fargo analyst Aaron Rakers raised the price target for Advanced Micro Devices (AMD) to $615 from $505. The firm maintained its Overweight rating on the stock. This update represents the second significant price target hike from Rakers in recent months.
The upgrade reflects increased confidence in AMD’s ability to capture demand for artificial intelligence infrastructure. Rakers anticipates strong growth for EPYC server processors and data center GPUs.
Wells Fargo increased revenue forecasts for the company's server CPU business. The firm also raised future earnings per share estimates. Rakers projects AMD could surpass $20 in annual earnings per share sooner than previously anticipated.