Wells Fargo analyst Aaron Rakers just bumped his AMD price target from $505 to $615. The interesting part: it has nothing to do with GPUs or AI accelerators, the categories that usually dominate the AMD conversation.
Instead, the revision is entirely about server CPUs. Rakers now projects AMD will pull in $16 billion in server CPU revenue by 2026, climbing to $20.5 billion in 2027 and $25 billion by 2028.
The numbers behind the upgrade
Rakers, who holds a 5-star rating on TipRanks, maintains an Overweight rating on AMD. His updated earnings per share estimates tell the growth story in three acts: $7.15 for 2026, $13.40 for 2027, and $18.75 for 2028.
The $615 target applies a price-to-earnings multiple of 33 on that 2028 EPS estimate.
