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AMD Surges Ahead as Wells Fargo Sees Buying Opportunity
6 Aug
Summary
- Wells Fargo reiterates Overweight rating, $185 price target on AMD
- AMD's data center GPU revenue down 13% YoY, but MI355X ramp-up expected
- AMD's server CPU revenue grows 30% YoY, outpacing Intel's 4% growth
As of August 6th, 2025, Wells Fargo has reiterated its Overweight rating and $185 price target on Advanced Micro Devices (AMD), believing the recent premarket pullback in the stock presents a buying opportunity.
The firm has expressed growing confidence in AMD's data center GPU roadmap, particularly the upcoming MI355X chip, and has noted strong momentum in the company's client and server segments. While AMD's second-quarter data center GPU revenue declined 13% year-over-year to an estimated $915 million, mainly due to the China ban, Wells Fargo remains bullish on the product mix shift and the anticipated ramp-up of the MI355X.
In the server CPU market, AMD has shown robust performance, with revenue growing 30% year-over-year to around $2.2 billion, significantly outpacing Intel's 4% growth in its comparable unit. Additionally, AMD's client computing segment reported a 69% jump in revenue year-over-year to $3.62 billion, beating both Wells Fargo and Street estimates.
Looking ahead, AMD has guided third-quarter revenue to $8.4 billion to $9.0 billion, implying a midpoint 28% increase from a year earlier, with gross margins around 54%. Wells Fargo has maintained its long-term estimates and declared that they are "Buyers on weakness" for AMD's stock.
