Following Advanced Micro Devices’ (NASDAQ: AMD) latest agreement with the artificial intelligence (AI) firm Anthropic, Wells Fargo’s (NYSE: WFC) Aaron Rakers announced that his confidence in his above-consensus price target for AMD stock has been further reinforced.
Specifically, the Wall Street analyst explains that the deal – despite being widely expected – strengthened the forecast that the blue-chip chipmaker’s revenue from graphics processing units (GPUs) will hit $40.6 billion in 2027.
Rakers added that the MI455X and Helios rack-scale systems, worth billions of dollars, might push expectations for AMD toward $50 billion before reiterating the ‘Overweight’ – ‘Buy’ – rating and the $615 stock price target for the next 12 months.
Analysts predict AMD stock price in the next 12 months
Zooming out reveals that Wells Fargo’s recommendation for the semiconductor giant falls largely in line with the wider attitude on Wall Street, even if its share price forecast is significantly above the consensus.
Indeed, AMD stock is overall considered a ‘Strong Buy’ with 28 positive, 8 ‘Hold,’ and no negative ratings, per the data Finbold retrieved from TipRanks on July 23.
Notably, despite the recommendation, the chipmaker’s shares are, on average, expected to drop 1.99% from their latest close at $552.33 to $541.31 within the next 12 months.
Examining the individual notes reveals that the apparently bearish price target is most likely a result of older forecasts – aggregators tend to take into account all institutional predictions issued within the most recent three months.
Still, Blayne Curtis from Jefferies estimated AMD stock would find itself at $515 – a 6.76% downside from the latest close – despite issuing a ‘Buy’ recommendation as recently as July 16, demonstrating that not all bulls are confident the semiconductor giant’s rally can continue.
Is AMD stock headed for a massive breakout?
Lastly, Advanced Micro Devices shares’ performance since 2026 indicates the equity might soon face a breakout. Year-to-date (YTD), AMD is up 147.16% but has, despite significant volatility, remained relatively stagnant since early June.
Under the circumstances, it appears that the stock is undergoing an accumulation phase with its next direction remaining somewhat uncertain: though the large-scale agreement with Anthropic appears like a bullish catalyst, it could also trigger a sell-off due to rising skepticism among investors toward AI.
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