UBS Raises AMD Target Price to $730, Maintains 'Buy' Rating

BlockBeats News, July 24, UBS raised AMD's target price from $700 to $730, maintaining its 'Buy' rating. UBS estimates AMD's earnings per share will reach approximately $19 in 2027 and rise to $27.57 in 2028, approaching $30, significantly higher than Wall Street's consensus estimate of around $19 for 2028. UBS believes that the rapid growth of the server CPU business and a gross margin approximately 10 percentage points higher than the company average will provide AMD with a 'margin protection umbrella,' enabling it to launch the MI500 series at more competitive prices in 2027, further expanding its market share in data center GPUs. Following TSMC's increase in capital expenditures, UBS is more optimistic about AMD's supply improvement, projecting server CPU revenue of approximately $35 billion in 2027 and up to $60 billion in 2028. Its forecast of $44 billion in data center GPU revenue for 2027 may still be conservative; after a roughly 75% increase in stock price over the past three months, AMD remains UBS's top pick.