Wolfe Research has raised its price target on Advanced Micro Devices from $340 to $450, reaffirming an Outperform rating on the chipmaker. Analyst Chris Caso pointed to AMD’s deepening footprint in AI inference and agentic AI as the core drivers.

The data center engine keeps accelerating

AMD’s Q1 2026 numbers tell most of the story. Data Center revenue hit $5.775 billion for the quarter, a 57% jump compared to the same period a year earlier.

The surge was primarily fueled by demand for AMD’s Instinct MI300 and MI350 series GPUs. These chips handle the heavy computational lifting required by AI workloads, particularly the inference tasks that run trained models in production environments.

AMD’s MI450 GPU, codenamed “Helios,” is slated for launch in Q3 2026.

A target that kept climbing

Wolfe Research’s conviction on AMD has been building for a while. Back in October 2025, Caso upgraded the stock to Outperform with a $300 price target, projecting a path to more than $10 in earnings per share by 2027. The target then moved to $340 in May 2026 before this latest bump to $450.

What this means for investors

Caso’s emphasis on agentic AI is worth paying attention to. Agentic AI refers to systems that can autonomously plan, reason, and take actions, not just respond to prompts. These workloads are more compute-intensive than standard inference, which means more GPU demand per task.

The $10-plus EPS target for 2027 that Wolfe originally outlined is the number to watch. If AMD can hit that milestone, the current stock price looks reasonable even at elevated multiples.