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

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

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

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