UBS Raises Price Targets for AMD and Arm on Standalone CPU Demand
UBS analyst Timothy Arcuri issued a research note on 24 June 2026, raising the price target for Advanced Micro Devices (AMD) to $670 from $455, while retaining a 35x earnings multiple. In the same note, the target for Arm Ltd was increased to $470 from $260, implying a 108x multiple.
The analyst highlighted accelerating demand for standalone CPU deployments in agentic AI infrastructure, positioning AMD and Arm as the primary beneficiaries. While some market participants project a total addressable market (TAM) of $300 billion by 2030, UBS cautions that DRAM constraints will likely limit the TAM, steering its own long‑term thesis toward AMD (ticker MU) because of expected DRAM scarcity.
AMD Outlook
- UBS assumes a 60/40 split between x86 and Arm architectures in the standalone CPU segment.
- AMD is expected to capture an outsized share of incremental demand due to Intel’s roadmap challenges and supply constraints.
- Forecast CPU server revenues for AMD are $23 billion in 2027, $29 billion in 2028, and $50 billion in 2030.
Arm Outlook
- Arm architectures are projected to hold roughly 70 % of a ~20 million‑unit head‑node market by 2030.
- UBS estimates Arm’s internal CPU revenue at approximately $14 billion in 2030, representing about 8 % of UBS’s own $170 billion TAM estimate.
- The analyst notes that current core‑count limitations will restrict Arm’s standalone rack prospects until future product generations are released.
Overall, UBS’s revisions reflect confidence in both companies’ ability to benefit from the growing AI‑driven demand for high‑performance, standalone CPUs, while tempering expectations on the broader market size.