The 22-year old former Arsenal trainee has penned a four-and-a-half year contract with the club following a successful medical.
Afobe has netted ten times in 27 appearances this campaign for Wolves and scored 32 goals last season for the Midlands side and MK Dons, where he was on loan.
The frontman has also represented England at youth level, playing for the under-16s, 17s, 19s and 21s sides during his career.
“We are absolutely delighted to secure the signature of another undoubted talent in Benik Afobe,” said Cherries chief executive Neill Blake.
“It has been difficult to miss Benik’s outstanding progress as a player, firstly with MK Dons and then Wolves, where he has been a consistent threat in front of goal. His pedigree as an Arsenal Academy product must also not be underestimated.
“Thank you to Jez Moxey and Wolverhampton Wanderers who have been a pleasure to deal with throughout negotiations. We look forward to seeing Benik in an AFC Bournemouth shirt soon."