Overview
UBS raised its 12-month price target on Advanced Micro Devices to $700 from $670 while retaining a "Buy" recommendation, citing growing conviction in the chipmaker's AI strategy and a broader set of customers for its GPU products. The brokerage's recent supply-chain checks indicate significantly stronger demand for AI accelerators extending through 2027.
Event expectations
The bank said it expects next week s "Advancing AI" event to emphasize AMD s technology roadmap rather than provide major near-term financial disclosures. Analysts following the company are looking for fresh details on a number of product roadmaps: the MI450X accelerator slated to launch later this year, the MI500 GPU family targeted for 2027, and updates on the Venice and Verano server CPU platforms.
Potential product and customer updates
UBS noted AMD may also touch on its embedded and gaming segments at the event, reveal additional AI customers, or disclose deeper collaborations around custom AI chips. While the brokerage highlighted likely interest from large cloud players, it cautioned investors that customer announcements are not guaranteed at the event.
Revenue scenarios informed by supply-chain research
Based on its supply-chain work, UBS outlined a scenario in which AMD could reach $40 billion to $50 billion in GPU revenue in 2027 if it secures three hyperscale AI customers with deployments above one gigawatt each. The brokerage specifically identified Amazon as a potential major customer for the MI450X platform and said Anthropic could be a candidate to adopt the chips, while reiterating that such customer relationships may not be announced imminently.
Forecast revisions
Reflecting the firmer view on AI infrastructure demand, UBS raised its 2027 revenue projection for AMD to $83.4 billion from $79.2 billion. The bank also increased its 2027 earnings-per-share estimate to $14.63 from $13.47 and lifted its 2028 EPS forecast to $21.11 from $18.85. UBS said these upward revisions support the higher 12-month price target.
Note: Information in this article is based on UBS s published estimates and supply-chain reporting related to AMD s AI product roadmap and potential customer deployments.