UBS raises AMD price target to $730, maintains 'Buy' rating

BlockBeats news, on July 24, UBS raised AMD's target price from $700 to $730 and maintained a "Buy" rating. UBS expects AMD's earnings per share to be about $19 in 2027, rising to $27.57 in 2028, approaching $30, significantly higher than the Wall Street consensus of around $19 for 2028.

UBS believes that the rapid growth of the server CPU business and a gross margin about 10 percentage points higher than the company's average will provide AMD with a "profit margin umbrella," allowing it to launch the MI500 series at more competitive prices in 2027, further expanding its data center GPU market share.

After TSMC raised its capital expenditure, UBS became more optimistic about AMD's supply improvement, expecting server CPU revenue of around $35 billion in 2027 and up to $60 billion in 2028. Its forecast for 2027 data center GPU revenue at $44 billion may still be conservative. After the stock price rose about 75% in the past 3 months, AMD remains UBS's top pick.