Wall Street Flags Advanced Micro Devices as a Buy Before Earnings

By Eric Bleeker Published Apr 1, 10:48AM EDT

Quick Read

Wells Fargo added AMD (AMD) to its Q2 Tactical Ideas List with an Overweight rating and $345 price target, citing strong EPYC server demand and expected GW-scale AI GPU announcements ahead of Q1 earnings on April 30.
AMD’s $345 price target is $55 above consensus, reflecting conviction in a near-term catalyst setup; the stock’s 5% year-to-date decline and forward P/E of 29x suggest the market has already priced in substantial growth, with long-term investors focused on validating the company’s ambitious AI revenue trajectory through April earnings and formal customer announcements.

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Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) is drawing fresh institutional attention ahead of its next earnings report. Wells Fargo added AMD to its Q2 Tactical Ideas List with an Overweight rating and a $345 price target, citing a positive setup into Q1 results driven by continued indications of strong EPYC server CPU demand plus additional GW-scale AI GPU announcements. The firm also flags its July Accelerating AI event as a likely positive catalyst.

Ticker	Company	Firm	Action	Old Rating	New Rating	New Target
AMD	Advanced Micro Devices	Wells Fargo	Added to Q2 Tactical Ideas List	Overweight	Overweight	$345

The Analyst’s Case

Wells Fargo analyst Aaron Rakers has been tracking AMD’s AI GPU pipeline closely. On the Q4 2025 earnings call, Rakers pressed Lisa Su directly on customer engagements for the MI455 and Helios platform, probing whether multi-gigawatt opportunities were materializing. Su’s response was unambiguous: “The customer engagements continue to proceed very well” and the MI450 ramp with OpenAI is “on schedule to start in the second half of the year.” Wells Fargo sees those engagements converting into formal GW-scale announcements around Q1 reporting, with AMD’s own July AI event adding another potential catalyst window.

Company Snapshot

AMD delivered a strong close to fiscal 2025. Q4 2025 revenue reached $10.27 billion, beating estimates by 6% and growing 34% year-over-year. The Data Center segment set a record at $5.38 billion, up 39% year-over-year. Non-GAAP EPS came in at $1.53, beating the $1.32 consensus estimate. For the full year, AMD generated free cash flow of $5.519 billion, up 129% year-over-year.

Q1 2026 guidance calls for revenue of approximately $9.8 billion, representing 32% year-over-year growth, with non-GAAP gross margin guided at approximately 55%. AMD is scheduled to report Q1 results on April 30, 2026, after market close.

Why the Move Matters Now

Wells Fargo’s $345 price target sits well above the analyst consensus target of $289.61, signaling above-consensus conviction. AMD trades at a forward P/E of 29x, a significant compression from the trailing multiple, which implies the market is already pricing in substantial earnings acceleration. Su put a number on that trajectory: AMD targets data center segment revenue growth of more than 60% annually over the next three to five years and AI revenue scaling to tens of billions annually in 2027.

AMD stock is down 5% year-to-date entering April, which Wells Fargo likely views as a favorable setup ahead of a catalyst-rich stretch. The stock has gained 98% over the past year. Key risks include U.S. export controls on Instinct GPUs to China, with Q1 2026 guidance including only approximately $100 million in MI308 China sales, and ongoing competition from Nvidia in AI GPUs and Intel in server CPUs.

What Investors Are Watching

Wells Fargo’s tactical addition of AMD reflects a near-term thesis built on two pillars: a Q1 earnings beat driven by EPYC server momentum, and GW-scale AI partnership announcements that could meaningfully re-rate the stock’s long-term revenue trajectory. With 39 buy-rated analysts and zero sell ratings among 51 covering the stock, the directional consensus is clear. Long-term investors should watch the April 30 earnings call for any formal GW-scale customer announcements and updated MI450 ramp timelines as the key signals to validate Wells Fargo’s thesis.

About the Author Eric Bleeker, CFA →

Eric Bleeker has been investing for more than 20 years. He began his career working at Microsoft before joining Motley Fool, one of the largest publishers of financial research. In his 15 years at Motley Fool Eric served as the General Manager for Fool.com and led coverage in the Technology & Telecom sector. In addition, he was a featured columnist and has hosted dozens of investing seminars attended by more than a million total investors. Eric has more than 1,000 financial bylines to his name and has been featured in The Wall Street Journal, CNBC, Fox Business, and many other leading publications. He is currently focused on artificial intelligence investing and is a CFA Charterholoder.