Key Takeaways
- UBS lifted its AMD price target from $670 to $700, keeping a Buy rating before next week’s “Advancing AI” event.
- Rosenblatt analyst Kevin Cassidy maintained Buy and boosted his price target from $490 to $665, naming AMD his “Top Pick.”
- KeyBanc’s John Vinh increased his price target from $530 to $725, maintaining a Buy rating.
- UBS projects AMD could achieve $40B–$50B in GPU revenue by 2027 with three major hyperscale clients.
- The Street consensus remains Strong Buy, with AMD shares climbing 147% year-to-date.
Shares of Advanced Micro Devices fell 3.5% during Wednesday’s trading session as the broader chip sector experienced a sharp downturn, with Micron and SanDisk tumbling more than 8%. The decline occurred even as several prominent Wall Street analysts issued optimistic updates ahead of AMD’s “Advancing AI” event.
Advanced Micro Devices, Inc., AMD
Timothy Arcuri from UBS increased his 12-month price objective on AMD shares to $700 from a previous $670, maintaining a Buy recommendation. The upgrade stems from supply chain intelligence indicating robust demand for AI accelerators extending through 2027.
UBS anticipates that next week’s event will emphasize AMD’s technological roadmap over specific financial projections. The firm is seeking information on the MI450X accelerator, the upcoming MI500 GPU series slated for 2027, plus developments regarding Venice and Verano server CPU architectures.
According to UBS analysis, Amazon is positioned to become a significant MI450X platform customer. The investment bank also identified Anthropic as a likely adopter, though it advised tempering expectations for official customer reveals during the event.
UBS has revised its 2027 revenue projection for AMD upward to $83.4 billion from $79.2 billion, while adjusting its 2027 EPS forecast to $14.63 from $13.47. The firm suggests AMD could capture $40B–$50B in GPU revenue by 2027 with commitments from three hyperscale partners deploying more than one gigawatt each.
Wall Street Firms Turn More Bullish Before Q2 Results
Kevin Cassidy at Rosenblatt maintained his Buy stance while significantly raising his price objective to $665 from $490, designating AMD as his firm’s “top long idea” in advance of August 4 Q2 earnings.
Cassidy anticipates AMD’s EPYC server processor will deliver over 70% revenue growth year-over-year accompanied by above-average gross profit margins. He believes AMD’s Venice CPU will dominate the premium server segment, particularly with Intel’s competing Diamond Rapids processor facing delays.
John Vinh from KeyBanc added his voice to the bullish chorus, elevating his target from $530 to $725 while maintaining Buy. Vinh forecasts server CPU unit expansion of 15%–20% in 2026 and exceeding 50% in 2027, with AI GPU sales reaching $16.8 billion this year and $48.5 billion in the following year.
Vinh highlighted that AMD’s MI455 and Helios AI products remain on schedule for a second-half 2026 launch.
Q2 Earnings Expectations
Analysts project AMD will deliver adjusted EPS of $1.61 for Q2 2026, representing a 235% increase year-over-year. Revenue is anticipated to climb 47% to $11.29 billion.
The Wall Street consensus rating for AMD stands at Strong Buy, supported by 28 Buy recommendations and eight Hold ratings. The mean price target of $538.19 suggests limited upside from present trading levels.
AMD shares have surged 147% year-to-date, despite Wednesday’s 3.5% retreat.
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