As Advanced Micro Devices, Inc. (NASDAQ: AMD) stock rallied to a new all-time high (ATH), Aaron Rakers, an analyst from Wells Fargo & Co. (NYSE: WFC), has signaled a further bullish outlook over the next 12 months.

Rakers raised his price target on AMD stock to $615 from $505, representing a 21.8% increase, while maintaining an ‘Overweight’ rating, according to a note to clients analyzed by Finbold on June 30.

The higher target for AMD stock price forecast was driven by stronger-than-expected demand and pricing power in Advanced Micro Devices’ EPYC server CPU business. As such, Rakers raised his earnings per share (EPS) estimates for calendar years 2027 (CY27) and 2028 (CY28) to $13.40 and $18.75, respectively.

Furthermore, he expressed greater confidence in the company’s ability to generate earnings exceeding $20 per share by calendar year 2028. The analyst highlighted the successful production ramp of AMD’s 6th Gen 2nm EPYC Venice server CPUs, which began in late May 2026, alongside sustained strength in Data Center GPU revenue.

As a result, Rakers projects AMD’s server CPU revenue to reach $25.0 billion in CY28, representing a 22% year-over-year increase. Although he acknowledges rising competition from Arm Holdings (NASDAQ: ARM) and NVIDIA Corp. (NASDAQ: NVDA), Rakers remains bullish on AMD stock.

He noted the company’s expanding competitive lead in high-core-count server CPUs and the strong long-term tailwinds from AI infrastructure buildout.

AMD stock price outlook

Amid the bullish rating for Advanced Micro Devices stock, investors continued to bet on higher prices. Moreover, AMD stock has rallied over 153% year to date (YTD), trading at approximately $565.51 at press time.

As such, Rakers implies that Advanced Micro Devices stock price could rally roughly 23.8% over the next twelve months from its current level.

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