As Advanced Micro Devices, Inc. (NASDAQ: AMD) stock rose sharply (ATH), Aaron Rakers, an analyst from Wells Fargo & Co. (NYSE: WFC), has shown further optimism over the next 12 months.
Rakers raised his price on AMD property to $615 from $505, which represents an increase of 21.8%, while maintaining ‘Obesity’, according to notes to clients surveyed by Finbold on June 30.
The higher target for AMD’s price forecast was driven by stronger-than-expected demand and pricing power in Advanced Micro Devices’ EPYC CPU business. So, Rakers he was promoted earnings per share (EPS) estimates for calendar years 2027 (CY27) and 2028 (CY28) are $13.40 and $18.75, respectively.
In addition, he expressed greater confidence in the company’s ability to generate more than $20 per share by 2028. The analyst highlighted the best way to produce AMD’s 6th Gen 2nm EPYC Venice server CPU, which started at the end of May 2026, along with the steady strength in Data Center GPU acquisitions.
As a result, Raker projects AMD’s server CPU revenue to reach $25.0 billion in CY28, representing 22% year-over-year growth. Although he acknowledges increased competition from Arm Holdings (NASDAQ: ARM) and NVIDIA Corp. (NASDAQ: NVDA), Rakers remains bullish on AMD stock.
He added that the company is growing in competition for high-end CPUs and long-term power stability from its AI architecture.
The price of AMD shares
Amid the highs for Advanced Micro Devices stock, investors continued to bet on higher prices. Additionally, AMD stock is up 153% year-to-date (YTD), trading at around $565.51 at press time.
Accordingly, Rakers suggests that Advanced Micro Devices’ stock price could rise by approximately 23.8% over the next twelve months from now.
