AMD stock: Wells Fargo maintains Overweight, raises PT to $185 from $120.

AMD stock: Wells Fargo maintains Overweight, raises PT to $185 from $120.

Wells Fargo has maintained its Overweight rating on Advanced Micro Devices Inc. (NASDAQ: AMD) while raising its price target to $185 from $120. The move comes amidst a series of positive analyst upgrades and strong financial performance reported by the semiconductor giant. Wells Fargo's latest assessment underscores the market's growing confidence in AMD's prospects, particularly in the data center GPU and AI markets.

Recent financial reports have highlighted AMD's robust revenue streams and strong gross margins, with a gross margin of 62.4% and revenue of approximately $25.78B in the latest quarter. The company's Price-to-Earnings (P/E) ratio stands at 106.74, reflecting investor optimism about future earnings growth. Additionally, AMD's Price-to-Sales (P/S) ratio of 8.54 indicates a premium investment value, further bolstering its financial health.

Analysts have been particularly bullish on AMD's data center GPU prospects. BofA Securities, for instance, raised its price target to $175, citing stronger-than-expected data center GPU prospects and AMD's strong pricing for its western MI355X GPU. The semiconductor giant is expected to ship $400-$600 million quarterly in data center GPUs during the second half of 2025 and throughout 2026, adding approximately $1 billion to AMD’s 2025 data center GPU forecast and $2 billion to consensus expectations for 2026.

Wells Fargo's decision to raise its price target aligns with the broader analyst consensus, which remains firmly bullish with a 1.75 rating. The firm's new target represents a 31x price-to-earnings multiple on 2026 estimated earnings, within AMD’s historical range of 13x-39x and close to its five-year median of 32x. Currently trading at a P/E ratio of 114x, AMD shows characteristics of a growth stock with higher volatility (Beta: 2.05).

AMD's recent surge in stock price, reflecting strong market confidence, has been driven by several factors, including positive analyst upgrades and strong financial performance. The company's strategic alignment in high-performance computing arenas, coupled with technological advancements, positions it well to navigate the kaleidoscope of market expectations. As financial thresholds ascend, AMD aims squarely at innovation, enabling it to navigate market volatilities while keeping its financial growth trajectories on course.

In conclusion, Wells Fargo's decision to maintain its Overweight rating and raise its price target for AMD stock reflects the broader market sentiment, which is overwhelmingly bullish on the semiconductor giant's prospects. The company's strong financial performance, coupled with positive analyst upgrades and technological advancements, positions AMD well for future growth.

References:
[1] https://stockstotrade.com/news/advanced-micro-devices-inc-amd-news-2025_07_15/
[2] https://www.investing.com/news/analyst-ratings/amd-stock-price-target-raised-to-175-from-130-at-bofa-on-ai-growth-93CH-4136327