AMD shares (AMD) get a new forecast after 5-star UBS analyst Timothy Arcuri raised its price target to $300 from $265, maintaining a Buy rating on the chipmaker. The firm said it sees “stronger visibility” into AMD’s data center business and pointed to several upcoming catalysts that could drive the stock higher into 2026.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
UBS Turns More Bullish on AMD’s AI Outlook
In its note to clients, UBS said AMD is entering a new phase of growth powered by demand for AI accelerators and high-performance GPUs. The analysts wrote that the company’s fundamentals are “improving faster than expected” as it wins more server and AI-related business.
The bank highlighted AMD’s growing traction with cloud providers and enterprise customers, noting that its MI300 accelerator chips are showing early signs of strong adoption. UBS added that the stock could re-rate higher as investors gain confidence in AMD’s ability to expand its AI market share against Nvidia (NVDA).
Data Center Strength and OpenAI Deal Support the Case
The call comes a day after AMD reported stronger-than-expected earnings and guided fourth-quarter revenue to about $9.6 billion, above Wall Street estimates. The company said AI chip demand continues to accelerate, supported by new long-term supply deals with OpenAI and other hyperscale customers.
UBS analysts said they expect upside to estimates and sentiment as AMD continues to deliver new product announcements and wins in AI computing through year-end. They also noted the potential for AMD’s earnings per share to reach the $15–$20 range later this decade, assuming its data center business continues scaling at the current pace.
What Investors Should Look Out for Next
UBS flagged a few key catalysts that could shape AMD’s near-term direction, including updates on GPU shipments, cloud partnerships, and progress in expanding production capacity for AI accelerators. The analysts added that upcoming industry events and additional customer announcements could further solidify AMD’s AI roadmap.
Is AMD Stock a Good Buy?
Based on 39 Wall Street analysts offering 12-month price targets for Advanced Micro Devices (AMD) in the past three months, the stock holds a Moderate Buy consensus rating. Out of these, 29 analysts rate AMD a Buy, 10 recommend a Hold, and none suggest a Sell.
The average 12-month AMD price target stands at $255.77, representing a potential 2.3% upside from the latest closing price.
