Key Takeaways
- UBS increased AMD’s price objective to $700 from $670, keeping its Buy recommendation before next week’s “Advancing AI” showcase.
- Rosenblatt analyst Kevin Cassidy maintained his Buy stance while boosting his target to $665 from $490, naming AMD his “Top Pick.”
- KeyBanc’s John Vinh elevated his price objective to $725 from $530, maintaining his Buy recommendation.
- UBS projects AMD could achieve $40Bā$50B in GPU sales by 2027 through securing three hyperscale clients.
- Analyst consensus remains Strong Buy, with AMD shares climbing 147% since the start of the year.
Shares of Advanced Micro Devices declined 3.5% during Wednesday’s trading session amid a broader sell-off across semiconductor stocks, with both Micron and SanDisk tumbling more than 8%. The pullback occurred even as multiple Wall Street firms issued bullish price target increases ahead of the chipmaker’s forthcoming “Advancing AI” presentation.
Advanced Micro Devices, Inc., AMD
Timothy Arcuri of UBS elevated his 12-month price objective for AMD to $700 from $670, maintaining his Buy recommendation. The analyst cited supply chain intelligence indicating robust AI accelerator demand extending through 2027 as the primary catalyst for the revision.
According to UBS, next week’s presentation will likely emphasize AMD’s product development timeline rather than financial projections. The firm anticipates information regarding the MI450X accelerator, the forthcoming MI500 GPU series slated for 2027, along with progress updates on Venice and Verano server processor platforms.
UBS identifies Amazon as a likely major purchaser of the MI450X platform. The investment bank also highlighted Anthropic as a prospective client, though it tempered expectations for official customer reveals during the event.
The firm now projects AMD’s 2027 revenue at $83.4 billion, revised upward from $79.2 billion, while lifting its 2027 earnings per share forecast to $14.63 from $13.47. UBS suggests AMD could generate $40Bā$50B in GPU revenue by 2027 should it successfully onboard three hyperscale customers each deploying more than one gigawatt.
Additional Wall Street Analysts Express Confidence Before Q2 Results
Kevin Cassidy from Rosenblatt Securities maintained his Buy rating while significantly raising his price target to $665 from $490, designating AMD as his firm’s “top long idea” entering the August 4 Q2 earnings announcement.
Cassidy anticipates AMD’s EPYC server processor line will deliver year-over-year revenue expansion exceeding 70% accompanied by superior gross margin performance. He also forecasts AMD’s Venice processor capturing leadership in the premium server segment, particularly as Intel’s competing Diamond Rapids chip faces postponements.
John Vinh of KeyBanc added to the optimistic sentiment, increasing his target to $725 from $530 while reaffirming his Buy rating. Vinh projects server CPU unit expansion of 15%ā20% during 2026 and surpassing 50% in 2027, alongside AI GPU revenue reaching $16.8 billion this year and $48.5 billion in the following year.
Vinh noted that AMD’s MI455 and Helios AI products remain scheduled for a second-half 2026 deployment.
Q2 Earnings Outlook
Analysts predict AMD will deliver adjusted earnings per share of $1.61 for Q2 2026, representing a 235% year-over-year increase. Revenue is forecast to jump 47% to $11.29 billion.
Wall Street maintains a Strong Buy consensus on AMD, supported by 28 Buy recommendations and eight Hold ratings. The mean price target stands at $538.19, suggesting limited upside from present trading levels.
AMD stock has surged 147% year-to-date, despite Wednesday’s 3.5% decline.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
