Wells Fargo doubles down on AMD stock after Anthropic deal

2 months ago 42

Hillary Remy

Fri, July 24, 2026 astatine 12:07 PM CDT 5 min read

AMD has already had 1 of the champion years of immoderate banal successful the market. Up much than 170% year-to-date. A marketplace headdress pushing toward $1 trillion. A server CPU concern that's been softly taking stock from Intel portion the GPU communicative was getting each the headlines. Wells Fargo expert Aaron Rakers raised his terms people to $615 from $505 astatine the extremity of June aft AMD's EPYC Venice processors began ramping up of immoderate anterior generation.

Then connected July 22, AMD confirmed a woody with Anthropic worthy up to $5 billion. And Rakers enactment retired different enactment saying the Anthropic woody gave him "further confidence" successful estimates that are already supra Wall Street consensus. The $615 people stays. The condemnation down it conscionable got stronger.

Wells Fargo holds $615 AMD terms people aft Anthropic deal

The Anthropic woody was wide expected by investors. AMD had already announced akin arrangements with Meta and OpenAI, each committing to 6 gigawatts of AMD-based infrastructure, with 1GW archetypal deployments from some expected successful the 2nd fractional of 2026.

Anthropic's woody adds up to 2GW of Instinct MI455X GPUs and Helios rack-scale systems, with the archetypal gigawatt of compute opening deployment successful the archetypal fractional of 2027. AMD's equity concern of up to $5 cardinal successful Anthropic is milestone-contingent, meaning AMD writes the cheque arsenic Anthropic hits agreed deployment targets.

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"While an Anthropic woody was wide anticipated, we presumption this arsenic incrementally affirmative pursuing this week's Microsoft announcement," Rakers wrote successful the note,according to TipRanks. "We person 'further confidence' successful our above-consensus AMD information halfway GPU gross estimation astatine $40.6B successful 2027. We deliberation this volition easy propulsion buy-side expectations to greater than $50B."

AMD shares roseate astir 2% connected July 22 successful midday trading. The banal has been 1 of the strongest performers successful semiconductors each year. Rakers ranks 8th retired of much than 12,000 Wall Street analysts tracked by TipRanks, with a 73% occurrence complaint and an mean instrumentality of 59.4%.

Why Wells Fargo sees AMD GPU gross doubling Wall Street's expectations

Rakers' $40.6 cardinal information halfway GPU gross estimation for 2027 isn't conscionable supra consensus. It's substantially supra it. His 2027 EPS estimation of $13.40 runs astir 3% up of the Street. His 2028 estimation of $18.75 is astir 8% supra consensus. The $615 terms people is built connected a 33 times net aggregate applied to that 2028 number.

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