UBS raises AMD price target ahead of AI event
UBS has lifted its 12‑month price target for Advanced Micro Devices (NASDAQ:AMD) to $700, up from $670, while maintaining a "Buy" rating. The brokerage cited growing confidence in AMD’s AI roadmap, an expanding customer base and stronger long‑term GPU revenue potential as the rationale for the higher target.
The firm expects the upcoming "Advancing AI" event, scheduled for next week, to focus primarily on AMD’s technology roadmap rather than major financial updates. Anticipated disclosures include details on the MI450X accelerator slated for launch later this year, the MI500 GPU family expected in 2027, and progress on the Venice and Verano server CPU platforms. UBS also noted that AMD may provide updates on its embedded and gaming businesses, announce additional AI customers, or reveal deeper partnerships in custom AI chips.
Based on supply‑chain research, UBS projects that AMD could generate between $40 billion and $50 billion in GPU revenue in 2027 if the company secures three hyperscale AI customers each deploying more than one gigawatt of capacity. The brokerage identified Amazon as a likely major customer for the MI450X platform and mentioned that Anthropic could also adopt the chips, while cautioning investors not to expect formal customer announcements at the event.
Reflecting stronger AI infrastructure demand, UBS raised its 2027 revenue forecast to $83.4 billion, up from $79.2 billion, and increased its 2027 earnings‑per‑share estimate to $14.63, up from $13.47. The firm also lifted its 2028 EPS forecast to $21.11, compared with the prior estimate of $18.85, underpinning the higher price target.