Wells Fargo Analyst Raises AMD Price Target After Anthropic Deal
Wells Fargo analyst Aaron Rakers has reaffirmed a price target of $615 for Advanced Micro Devices (AMD) following the company's announcement of a multi-billion-dollar deal with AI firm Anthropic. The agreement, which includes up to $5 billion in equity investment from AMD and involves deployment of Instinct MI455X GPUs starting 2027, has strengthened Rakers' confidence in his above-consensus revenue estimates for AMD’s data center GPU segment. Rakers projects AMD's data center GPU revenue will reach $40.6 billion by 2027 and nearly triple again to $63 billion by 2028. His analysis highlights a strategic shift from training AI models toward inference, where AMD believes its EPYC CPUs and Instinct GPUs can outperform Nvidia. The deal also includes an engineering collaboration with Anthropic using AMD's ROCm software stack. The analyst’s confidence is further supported by prior deals with Meta and OpenAI, each committing to 6 gigawatts of AMD-based infrastructure. Rakers ranks among the top Wall Street analysts for accuracy, giving additional weight to his bullish outlook on AMD.
Topics: AI Infrastructure Deals AMD Analyst Upgrade Wells Fargo