Wells Fargo has added Advanced Micro Devices (NASDAQ: AMD) to its second-quarter Tactical Ideas List, citing growing confidence in the chipmaker’s near-term prospects.
The bank’s positive outlook is anchored in expectations of strong performance heading into AMD’s upcoming first-quarter earnings report.
To this end, the banking giant has maintained an ‘Overweight’ rating on AMD shares, setting a price target of $345. The target implies a potential increase of about 70% from the stock’s price of $203 at press time.
A key driver behind this optimism, according to analyst Aaron Rakers, is sustained demand for the company’s EPYC server processors, which continue to gain traction in data center markets amid rising enterprise and cloud computing needs.
Momentum is also building around AMD’s expanding presence in AI hardware.
The Wells Fargo analyst noted that the company, increasingly seen as a direct challenger to Nvidia (NASDAQ: NVDA), is expected to unveil further developments in large-scale AI graphics processing units, a segment that has become central to the ongoing AI boom.
AMD Advancing AI event
Additional upside could come from AMD’s upcoming Advancing AI event, scheduled for July 22–23, 2026, in San Francisco.
The two-day conference will feature keynote addresses from CEO Lisa Su and other top executives, bringing together a broad mix of AI ecosystem partners, customers, and developers.
The event is expected to showcase next-generation enterprise AI technologies, including the anticipated Instinct MI500 series accelerators and new Verano CPUs built on the Zen 7 architecture.
These announcements build on momentum from AMD’s previous Advancing AI event in 2025, which generated more than 20 gigawatts of orders.
A significant portion of that demand came from major technology players such as OpenAI and Meta Platforms, with additional commitments from other customers extending through 2030.
Meanwhile, the rest of Wall Street remains bullish on AMD stock over the next 12 months. Notably, according to analysts tracked by TipRanks, the stock carries a ‘Moderate Buy’ rating from 29 analysts.
Based on this outlook, AMD has an average price target of $285.16, implying a potential upside of about 40%. The highest target is set at $358, and the lowest at $220.
Of the analysts covering the stock, 21 recommend buying, while eight suggest holding, and none advise selling.
