AMD Stock Gets $670 Price Target as UBS Bets Big on Server CPUs

TLDR

• UBS raised its AMD price target from $455 to $670, maintaining a Buy rating, citing server CPU market share gains
• AMD stock is trading around $519.85, up 275% over the past year
• UBS now projects AMD’s server CPU revenue will reach $50 billion by 2030, up from a prior estimate of $41 billion
• AMD posted Q1 revenue of $10.25 billion, up 37.8% year over year, beating analyst expectations
• Ritholtz Wealth Management increased its AMD stake by 13.4% in Q1, while institutional ownership stands at 71.34%

UBS has lifted its price target on Advanced Micro Devices to $670, up from $455, while keeping its Buy rating in place. AMD stock was trading around $519.85 at the time of the call, meaning the new target implies roughly 29% upside from current levels.

Advanced Micro Devices, Inc., AMD

The bank’s analyst Timothy Arcuri said the firm is more positive on AMD as standalone CPU racks gain traction. The reasoning centers on AMD’s advantages in core count, multithreading, and x86’s software ecosystem — particularly for traditional workloads that are becoming part of agentic AI deployments.

UBS now models a 60/40 split between x86 and ARM in the standalone server segment. That split is key to the bull case, as it positions AMD to capture an outsized slice of growing demand.

The firm also pointed to Intel’s roadmap and supply challenges as a tailwind for AMD. With Intel facing its own hurdles, AMD has room to take incremental market share.

UBS revised up its AMD server CPU revenue estimates across multiple years. For 2027, the estimate went from $21 billion to $23 billion. For 2028, it rose from $27 billion to $29 billion. The 2030 projection jumped from $41 billion to $50 billion.

The new $670 price target is based on an unchanged 35x earnings multiple. UBS kept its valuation methodology the same — it’s the higher revenue estimates doing the heavy lifting.

Analyst Sentiment Broadly Positive

UBS isn’t alone. TD Cowen raised its target from $500 to $600 with a Buy rating in June. Loop Capital upgraded AMD to Strong Buy in mid-June. KeyCorp lifted its target from $330 to $530 with an Overweight rating.

The consensus rating across 43 analysts currently sits at Moderate Buy, though the average price target of $440.41 is actually below where AMD is trading today — a sign the stock has outrun some of the Street.

Gartner called AMD the “company to beat for enterprise AI server CPUs,” adding another data point to the bullish case around its EPYC lineup.

Fundamentals Back Up the Optimism

AMD’s most recent quarter gave analysts something to work with. The company posted EPS of $1.37 for Q1, beating the $1.29 consensus. Revenue hit $10.25 billion, topping the $9.90 billion estimate and rising 37.8% from the same period last year.

Analysts currently forecast full-year EPS of $6.15 for AMD.

On the institutional side, Ritholtz Wealth Management added 4,001 AMD positions in Q1, boosting its stake by 13.4% to 33,930 positions worth about $6.9 million. Institutional investors and hedge funds collectively own 71.34% of the stock.

AMD also completed the acquisition of MEXT, an AI-driven memory optimization company aimed at improving data center performance and reducing costs for enterprises dealing with memory constraints.

AMD opened Thursday at $518.55, with a market cap of $845.55 billion and a P/E ratio of 170.02. The 12-month range sits between $133.50 and $562.99.

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