Why Wells Fargo Calls AMD a Top AI Pick for 2026

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the AI Stocks Analysts Are Watching Closely. On January 15, Wells Fargo analyst Aaron Rakers reiterated an “Overweight” rating on the stock with a $345.00 price target. Firm analysts view AMD as a leading beneficiary of data center compute demand, deeming it a ‘Top Pick’ for 2026.

Rakers sees a significant upside potential (+55%) driven by strength in CPU leadership, AI GPUs, and AMD’s Helios systems momentum. He believes that the company’s path to $20+/sh. EPS by calendar 2029 may become more visible as the company moves forward this year.

"We think AMD’s path to $20+/sh. EPS by calendar 2029 could become more visible as we move through 2026, as strong product roadmap execution continues to intersect our maintained view of insatiable data center compute demand."

Analysts on Wall Street have a consensus “Buy” rating on the stock. The average price target of $290 implies a 25.09% upside; however, the Street-high target of $380 implies an upside of 63.91%.

Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications.

While we acknowledge the potential of AMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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