Overview
- Analysts remain divided, with Wells Fargo at $345 (Overweight), UBS at $310 (Buy), and Citi at $248 (Neutral) after moving to a sum-of-the-parts valuation that separates AMD’s CPU and GPU businesses.
- AMD’s server CPU revenue share reached about 41.3% in Q4 2025, signaling faster gains against Intel and reinforcing the data-center story that has driven recent estimates higher.
- Citi nudged its 2026 EPS forecast to $6.38, citing demand from “agentic AI,” a newer class of more autonomous AI tasks that uses more server CPU horsepower and expands data-center needs.
- Citi says AMD and Intel have been notifying customers of CPU price increases, a trend that can lift margins and earnings power heading into AMD’s next quarterly report.
- Near-term focus centers on AMD’s upcoming Q1 results, with speculation around a possible third gigawatt-scale AI deal that UBS links to Microsoft as a likely candidate and with MI450 GPU shipments tied to OpenAI and then Meta expected later this year.