Wells Fargo Maintains High Price Target on AMD Following Anthropic Deal
Wells Fargo analyst Aaron Rakers has reaffirmed a $615 price target for Advanced Micro Devices (AMD) following the company's recent deal with AI firm Anthropic, which is valued up to $5 billion. The agreement includes the deployment of Instinct MI455X GPUs and Helios systems starting in 2027. Rakers expressed increased confidence that AMD will exceed Wall Street expectations for data center GPU revenue in 2027, projecting $40.6 billion compared to consensus estimates below this figure. The analyst also highlighted a multi-year engineering collaboration with Anthropic aimed at optimizing AI workloads on AMD's ROCm software stack and Instinct GPUs. In addition to the GPU story, Rakers emphasized strong growth in AMD’s server CPU business, raising revenue forecasts for 2026 through 2028. The firm sees significant upside potential as AMD moves into inference computing where its EPYC CPUs and Instinct GPUs could challenge Nvidia's dominance.
Topics: AMD Anthropic deal price target Wells Fargo